Morning Commentary: Colony NorthStar’s new deal frees to trade; Public Storage, B. Riley still eyed

By Stephanie N. Rotondo

Seattle, May 25 – The preferred stock market was little moved in early Thursday trading as a trader noted that liquidity was slowing down ahead of the long holiday weekend.

“It’s going to be dead,” he said of Friday’s session, given that market players will be rushing out to begin celebrating Memorial Day.

Still, deals that priced during the week remained in play.

Colony NorthStar Inc.’s $300 million of 7.15% series I cumulative redeemable preferred stock freed from the syndicate at 11 a.m. ET, a trader said.

He saw the issue quoted at $24.92 bid, $24.97 offered.

The deal came upsized from $100 million and tight to the 7.25% price talk.

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

From Tuesday’s business, Public Storage’s $250 million of 5.15% series F cumulative preferreds were seen at $24.75 bid, $24.95 offered.

That deal was also upsized from $100 million. Price talk was 5.25%.

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

Also from Tuesday, B. Riley Financial Inc.’s $52.5 million of 7.5% $25-par notes due 2027 had freed to trade, according to a market source.

The source pegged the paper in a $24.65 to $24.75 context.

The issue, which was increased from a planned $25 million, was talked at 7.5%.

FBR Capital Markets, B. Riley, Wunderlich Securities Inc. and Incapital LLC led the deal.

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