Gladstone exercises greenshoe; Bank of America, U.S. Bancorp up; Public Storage lower

By James McCandless

San Antonio, Aug. 22 – The preferred market’s recent issues saw more prominence in Wednesday trading.

Gladstone Investment Corp.’s new 6.375% $25-par series E cumulative term preferred stock was increased to $74.75 million in a full greenshoe exercise.

Bank of America Corp.’s 5.875% series HH non-cumulative perpetual preferred stock improved, leading secondary trading.

Public Storage’s 5.2% series W cumulative preferred shares declined. The company recently posted a better-than-expected earnings report.

U.S. Bancorp’s $575 million of 5.5% series K non-cumulative perpetual preferred stock gained.

Gladstone’s greenshoe

Underwriters for Gladstone’s new 6.375% $25-par series E cumulative term preferred stock due 2025 fully exercised their $9.75 million greenshoe, lifting the total deal size to $74.75 million.

As previously reported, the company priced $65 million of the preferred stock on Aug. 15 (see related story elsewhere in this issue).

The preferreds, trading under the temporary symbol “GLDZP,” were up 1 cent to close at $25.08 on volume of about 75,000 shares.

Bank of America gains

Bank of America’s 5.875% series HH non-cumulative perpetual preferred stock rose, leading secondary trading for the second day in a row.

The preferreds (NYSE: BACPrK) were up 4 cents to close at $25.53 on volume of about 703,000 shares.

On Tuesday, the preferreds gained 5 cents.

Public Storage down

Public Storage’s 5.2% series W cumulative preferred shares fell on increased attention. In its recent second-quarater report, the company showed earnings of $2.65 per share against analyst predictions of $2.61 per share.

The preferreds (NYSE: PSAPrW) were down 1 cent to close at $24.67 with about 619,000 shares trading.

U.S. Bancorp rises

U.S. Bancorp’s recent $575 million of 5.5% series K non-cumulative perpetual preferred stock improved.

The preferreds (NYSE: USBPrP) were up 3 cents to close at $25.31 on volume of about 578,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was up 0.05% at market close after gaining 0.02% in early trading.

The iShares US Preferred Stock ETF was down 4 cents to $37.64.

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