Morning Commentary: Public Storage, B. Riley Financial plan new issues; both do well in the gray

By Stephanie N. Rotondo

Seattle, May 23 – The preferred stock new issue pipeline was starting to flow on Tuesday, as two deals were added to the calendar.

Public Storage said it was offering $100 million of series F cumulative preferred stock, with price talk around 5.25%.

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

Ahead of pricing, a trader said the paper was trading at $24.85 bid, $24.90 offered in the early gray market.

As for the company’s existing preferreds, the 4.9% series E cumulative preferred shares (NYSE: PSAPrE) were off 14 cents at $23.76.

Meanwhile, B. Riley Financial Inc. said it was selling $25 million of $25-par notes senior notes due 2027.

That deal will price via FBR Capital Markets, B. Riley, Wunderlich Securities Inc. and Incapital LLC. Price talk is 7.5%.

“It should move up nicely,” a trader said, pegging the notes at $24.80 in the early gray market. He noted that the company already had a 7.5% issue, though it comes due in 2021.

That paper (Nasdaq: RILYL) was up 26 cents, or 1.01%, at $26.01 in mid-morning trading.

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