Morning Commentary: Wheeler to price $25 million add on to 8.75% preferreds, Insulet in demand

By Abigail W. Adams

Portland, Me., Jan. 9 – Wheeler Real Estate Investment Trust, Inc. plans to price a $25 million add on to its $25-par perpetual 8.75% series D cumulative convertible preferred stock after the market close Wednesday, according to a market source.

Ladenburg Thalmann & Co. Inc. and BTIG, LLC are acting as joint bookrunners for the registered offering, which carries a $3.75 million greenshoe, according to the deal’s prospectus.

The offering size is subject to change during the bookbuilding process.

The preferreds will form a single unit with the 8.75% series D cumulative convertible preferreds initially issued in September 2016. The conversion price is $16.96, which is equivalent to an initial conversion premium of 20% from the original pricing of the preferreds.

Wheeler’s preferred stock was down 4.57% to $17.5199 in early trading during Tuesday’s session. Wheeler’s common stock was down 1.98% to $8.16.

Insulet Corp.’s 1.25% convertible notes due 2021 and 1.375% convertible notes due 2024 continued to gain strength during Tuesday’s session after surging alongside their underlying equity on Monday.

Insulet’s 1.375% notes hit a peak of 107.672 in early trading Tuesday, their highest value since they were issued in early November, according to Trace data. Insulet’s 1.25% notes firmed to around 140 in active trading Tuesday after climbing to 142.75 during Monday’s session.

The 1.25% notes were previously trading in the 130 range.

Insulet stock was down in early trading Tuesday to $75.88, a decrease of 2.86%. The stock rose about 13.61% on Monday after Medicare Part D announced it would cover the Billerica, Mass-based medical device company’s proprietary OmniPod System for diabetes treatment.

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