Campus Crest preferreds take a hit; GasLog up; Banc of California stock on ‘high side’

By Christine Van Dusen

Atlanta, April 1 – Campus Crest Communities Inc. saw its preferred stock plummet on Wednesday after announcing a suspension of dividend payments for 2015 during an otherwise quiet session.

The Charlotte, N.C.-based company is focusing on “strategic repositioning, and strengthening our financial and liquidity position,” said Richard Kahlbaugh, Campus Crest non-executive chairman, in a press release. “The board of directors feels that suspending the company’s dividend payment at this time is a prudent step as we enhance our balance sheet and ensure compliance with the covenants in our financial agreements.”

In response, the company’s preferred series A shares fell $3.34 to close at $21.90 on 835,000 shares traded, a market source said.

“It probably should go lower, maybe five points lower than that,” he said.

In other trading on Wednesday, GasLog Ltd.’s new $100 million issue of 8.75% series A cumulative redeemable perpetual preference shares closed at $25.15 after trading at $25.10 earlier in the day and closing Tuesday at $24.80 bid.

The deal priced Monday, upsized from $50 million and at talk.

Investors were also keeping an eye on the new issue from Irvine, Calif.-based Banc of California Inc., an upsized $100 million issue of preferreds that priced at par to yield 7.375%. Initial price talk was 7.375% to 7.5%, according to a market source.

“It was up at par and five cents,” a market source said. “That’s on the high side of the normal range there.”

And the new issue from Providence, R.I.-based Citizens Financial Group Inc. – $250 million of 5.5% $1,000-par perpetual preferred stock – finished Wednesday’s session at 100.625, he said.

The notes came to the market via Goldman Sachs & Co. Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and RBS Securities Inc. in a Rule 144A and Regulation S offering.

Morning trading mixed

On Wednesday morning, Weingarten Realty Investors’ 6.5% cumulative preferred shares, series F, traded up 10 cents to $25.34 on 231,305 shares traded.

FelCor Lodging Trust’s 8% series C cumulative redeemable preferred stock fell 6 cents to $25.55 on 177,900 shares traded.

And MetLife Inc.’s 6.5% non-cumulative preferred stock, series B, dropped 21 cents to $25.95 on 149,052 shares traded.

Afternoon trades up and down

At the close on Wednesday, the Royal Bank of Scotland Group plc’s 6.6% noncumulative dollar preference shares, series S ADR, climbed 10 cents to close at $25.12 on 823,803 shares traded.

Citigroup Capital XIII’s series N preferreds dipped 2 cents to $26.50 on 433,603 shares traded.

RBS Capital Funding Trust V’s 5.9% noncumulative guaranteed trust preferred securities, series E, moved up 14.5 cents to $24.69.

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