Saul Centers sells add-on to preferreds; Scorpio Tankers admitted to trading on NYSE

By Christine Van Dusen and Stephanie N. Rotondo

Atlanta, Nov. 6 – Maryland’s Saul Centers Inc. priced an add-on to its 6.875% series C preferreds, and Monaco-based Scorpio Tankers Inc.’s new notes started trading on Thursday morning while other preferreds saw light volumes.

Real estate investment trust Saul Centers priced an additional $40 million of its 6.875% cumulative redeemable preferred shares. The 1.6 million shares, which have a $25.00 liquidation preference, priced at $25.17 for proceeds of $40.27 million, according to an FWP filing with the Securities and Exchange Commission.

The original $125 million of preferreds were issued on Feb. 12, 2013.

Raymond James & Associates Inc. was the bookrunner for the SEC-registered transaction.

The proceeds will be used to redeem all outstanding shares of the company’s 8% series A cumulative redeemable preferred stock and the related depositary shares.

The company expects to list the preferreds on the New York Stock Exchange under the ticker “BFSPrC.”

Also on Thursday, container ship company Scorpio Tankers’ $45 million of 7.5% $25-par senior notes due Oct. 15, 2017 – which priced on Oct. 28 – began trading on the New York Stock Exchange with the symbol “SBNB.”

Stifel, Nicolaus & Co. Inc., Jefferies Inc., Credit Suisse Securities (USA) LLC and Janney Montgomery Scott LLC were the joint bookrunners.

The offering has a $6.75 million over-allotment option.

Interest will be payable quarterly, beginning Jan. 15.

Upon a change of control, holders can require the company to repurchase the notes at 101% of par plus accrued interest. In the event of certain tax changes, the company can redeem the notes in whole at par plus accrued interest.

Proceeds will be used for general corporate purposes and for working capital, which may include the acquisition of new or secondhand vessels.

Trading mixed

In trading of preferreds on Thursday morning, ING Groep NV’s 7.375% perpetual hybrid capital securities were spotted up 5 cents at $25.70 on volume totaling 69,360. Late in the day the securities ticked up a penny to $25.66 on 109,641 shares traded.

Bank of America’s 6.204% noncumulative preferred stock series D traded down 4 cents at $25.18 on 29,459 shares.

And Barclays Bank plc’s 8.125% non-cumulative callable dollar preference shares, series 5 ADR, moved down a penny to $25.96 on 26,264 shares traded.

On Thursday afternoon, Royal Bank of Scotland’s 6.4% noncumulative dollar preference shares, series M, fell 4 cents to $24.70 on 159,329 shares traded.

And Barclays Bank’s 7¾% non-cumulative callable dollar preference shares, series 4, rose 6 cents to $25.93 on 92,181 shares traded.

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