BOK deal comes upsized, tight to talk; Summit Hotel added to calendar; pipeline growing

By Stephanie N. Rotondo

Seattle, June 20 – The preferred stock primary market was starting to pick up once again on Monday, as two new deals were announced.

Additionally, a trader said he was hearing there could be four to six more new issues coming during the week.

As for Monday’s session, BOK Financial Corp. brought a $150 million offering of 5.375% 40-year $25-par subordinated notes.

The deal was upsized from $100 million. Price talk was 5.5% to 5.625%.

Post-pricing, the deal was seen at $24.90 bid, $24.95 offered.

The issue is non-callable for five years

The Tulsa-based financial holding company will use the proceeds to help fund a $102.5 million cash payout to shareholders of MBT Bancshares upon closing of a planned acquisition of the company.

Meanwhile, Summit Hotel Properties Inc. said it was selling series D cumulative redeemable preferred stock.

Price talk was 6.5%, a market source reported.

“That’s a little light on yield for me,” a trader said.

Another market source quoted the issue at $24.90 bid.

Pricing information was unavailable as of 6:30 p.m. ET.

The Austin, Texas-based real estate investment trust plans to use proceeds for general corporate purposes, which may include the redemption of the 9.25% series A cumulative redeemable preferreds (NYSE: INNPA).

That issue becomes callable Oct. 28.

That paper was off a nickel at $25.79.

Among recent issues, Seaspan Corp.’s $115 million of 8.2% series G cumulative redeemable preferreds began trading on the New York Stock Exchange on Monday.

The ticker is “SSWPG.”

The preferreds were trading at $24.99 at mid-morning, down from par at the open. The paper ended at $24.93.

The company sold $100 million of the preferreds on June 9. A $15 million greenshoe was exercised on June 16, lifting total issuance to $115 million.

Fannie sees trading surge

Fannie Mae’s 8.25% series T noncumulative preferreds (OTCBB: FNMAT) dominated trading on Monday, with 19.71 million shares being exchanged.

The next most active issue was Wells Fargo & Co.’s 5.5% series X class A noncumulative perpetual preferreds (NYSE: WFCPX), which traded about 1.59 million times.

There was no news to explain the high level of trading in the Fannie issue, and market sources had little insight either.

It did appear that only a handful of trades occurred, indicating that large blocks were being sold.

The issue finished up 4 cents at $4.70.

For its part, the Wells Fargo issue was up 6 cents at $25.30.

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