Rexford Realty prices perpetual preferreds; Summit Midstream offers units; AT&T gains

By Cristal Cody

Tupelo, Miss., Nov. 6 – Preferreds ended mostly flat to slightly softer on Monday.

The Wells Fargo Hybrid and Preferred Securities index closed off less than ½ of a basis point.

The U.S. iShares Preferred Stock ETF also ended down less than ½ bp.

During the session, Rexford Industrial Realty, Inc. priced $75 million of 5.875% cumulative redeemable preferred shares.

The company plans to list the preferreds on the New York Stock Exchange under the ticker symbol “REXR Pr B.”

The preferreds were freed to trade late afternoon on Monday in over the counter trading under the temporary symbol “RXXFP.”

In other primary action, Summit Midstream Partners, LP announced on Monday that it is offering series A fixed-to-floating cumulative redeemable perpetual preferred units. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the bookrunners.

Looking at trading during the session, AT&T Inc.’s $1.15 billion of 5.35% $25.00-par global notes due Nov. 1, 2066 (NYSE: TBB) closed up 3 cents, or 0.12%, to $25.25.

On Friday, the notes traded at $25.25 bid, $25.35 offered, a source said.

The Dallas-based telecommunications company sold the notes on Oct. 25. The issue was initially talked to price in the 5.375% to 5.5% area.

The deal includes an over-allotment option of up to $172.5 million.

Rexford prices

Rexford Industrial Realty priced $75 million of $25.00-par series B cumulative redeemable preferred shares (Fitch: BB) with a 5.875% dividend on Monday, according to an FWP filed with the Securities and Exchange Commission.

The company sold 3 million shares in the offering.

BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.

The liquidation preference is $25.00 per share.

The preferreds become redeemable on and after Nov. 13, 2022 at $25.00 per share plus accrued dividends.

Proceeds will be used for acquisitions, repaying outstanding debt under Rexford’s revolving credit facility or other debt obligations, development or redevelopment activities and general corporate purposes.

Rexford is a Los Angeles-based real estate investment trust focused on industrial properties in southern California.

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