Morning Commentary: U.S. Cellular gains; Public Storage lists; Wells Fargo Real Estate ups deal

By Stephanie N. Rotondo

Phoenix, Dec. 3 – Preferred stocks were again attempting to recover recent losses in early Wednesday trading.

The market fell Monday and slipped again on Tuesday, despite ticking higher early in the day. As of mid-morning on Wednesday, the Wells Fargo Hybrid and Preferred Securities index was up 5 basis points.

United States Cellular Corp.’s $275 million of 7.25% senior unsecured notes due 2063 were seen trading around $24.62, a trader said. The Street market was $24.60 bid, $24.65 offered, he said.

The deal priced Monday and freed to trade on Tuesday.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, RBC Capital Markets, UBS Securities LLC and Wells Fargo Securities LLC ran the books.

In other recent deals, Public Storage’s $175 million of 5.875% series A cumulative perpetual preferreds began trading on the New York Stock Exchange on Wednesday.

The deal priced Nov. 20. The ticker symbol is “PSAPA.”

The paper was trading at $24.85 early in the session, down from opening levels of $24.91.

Looking forward, Wells Fargo Real Estate Investment Corp. increased the size of its previously proposed offering of series A cumulative perpetual preferreds.

The company initially said on Sept. 25 it would sell $100 million of the preferreds, but in a new regulatory filing, the deal was upped to $275 million.

A trader said he was hearing rumblings about the deal but had yet to see any details.

Wells Fargo Securities is the bookrunner.

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