New issues from DuPont Fabros, GATX do well; Sunstone Hotel quiet; Public Storage prices

By Stephanie N. Rotondo

Seattle, May 10 – The new issue calendar continued to push out preferred stock offerings on Tuesday.

DuPont Fabros Technology Inc. said it had sold $175 million of 6.625% series C cumulative redeemable preferreds. The deal was first announced on Monday, with price talk initially in a 6.75% to 7% range.

A trader said the issue had freed to trade early in the session, pegging the preferreds at $25.02 bid, $25.05 offered. By the close, the issue had ticked up to $25.05 bid, $25.10 offered.

Stifel Nicolaus & Co. Inc., Raymond James & Associates Inc., Goldman Sachs & Co. and RBC Capital Markets LLC are the joint bookrunners.

Meanwhile, Sunstone Hotel Investors Inc. announced it priced a $75 million offering of 6.45% series F cumulative redeemable preferred stock.

Price talk on that paper was initially 6.5% to 6.625%.

Wells Fargo Securities LLC was the bookrunner.

A trader said he had yet to see any markets for the Sunstone preferreds.

“It basically seems like everyone is focusing on [DuPont Fabros and GATX Corp.],” he said. As for the latter, he was referring to the $150 million sale of 5.625% $25-par senior notes due 2066 that priced late Monday from the Chicago-based transportation company.

The market also saw a new deal added to the calendar, as Public Storage said it was issuing series C cumulative preferreds.

The deal came after the close, with $200 million preferreds being sold at par to yield 5.125%.

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