LaSalle Hotel prices preferred stock; W.R. Berkley sells upsized $25-par debentures

By Stephanie N. Rotondo

Seattle, May 18 – The preferred stock new issue pipeline continued to push out deals during the midweek session.

LaSalle Hotel Properties said it had priced a $150 million offering of 6.3% series J cumulative redeemable preferreds. The deal was first announced on Monday with price talk between 6.375% and 6.5%.

A trader said the issue was trading at $24.95 bid, par offered.

Wells Fargo Securities LLC and BofA Merrill Lynch ran the books.

Dividends will be payable on the 15th day of January, April, July and October, beginning July 15. The preferreds become redeemable on or after May 25, 2021 at par plus accrued dividends.

The company can also redeem the issue in the event of a change of control that results in a delisting event. Alternatively, if the preferreds continue to be listed after a change of control, holders can convert their preferreds into common stock.

Proceeds will be used to reduce amounts outstanding under a senior unsecured credit facility and for working capital and general corporate purposes.

Meanwhile, W.R. Berkley Corp. brought a $290 million sale of 5.75% $25-par subordinated debentures due 2056.

Price talk on that issue was in the 6% area but was later revised to 5.75%. The deal also came upsized from $100 million.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Securities LLC and Wells Fargo are the joint bookrunners.

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