Preferred primary calendar builds; DDR comes upsized, tight to talk; Public Storage firms

By Stephanie N. Rotondo

Seattle, May 30 – A preferred stock trader speculated that the shortened holiday week would “probably see a couple of deals” on Tuesday.

To kick things off, DDR Corp. brought a $175 million $25-par offering, while CIT Group Inc. said it was selling a $1,000-par issue.

For its part, DDR priced $175 million of class A cumulative redeemable preferred stock at par to yield 6.375%.

Price talk was 6.5% to 6.625%.

Ahead of pricing, a trader speculated the deal would grow to $150 million from an originally expected deal size of $100 million, seeing the paper at $24.75 bid in the early gray market.

Later in the day, the issue was pegged at $24.90 bid, par offered.

A market source opined that the deal “would do OK, but not great,” especially as the deal size was upped and the coupon came tighter than talk.

Wells Fargo Securities LLC, RBC Capital Markets, Stifel Nicolaus & Co. Inc. and UBS Securities LLC ran the books.

Meanwhile, CIT Group said it was offering up to $325 million of $1,000-par series A fixed-to-floating rate noncumulative perpetual preferred stock.

Pricing information was not available as of 6 p.m. ET.

Morgan Stanley & Co. LLC, Barclays and Credit Suisse Securities (USA) LLC are the joint bookrunners.

Separately, Public Storage’s $250 million of 5.15% series F cumulative redeemable preferreds were seen at $24.75 at the bell, a gain of a nickel.

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