Morning Commentary: Jernigan Capital’s series B preferreds in the works; recent deals lose ground

By Abigail W. Adams

Portland, Me., Jan. 19 – Jernigan Capital’s pricing of $50 million shares of $25-par series B cumulative redeemable perpetual preferred stock is still in the works with the books expected to close Friday afternoon, a market source said.

Price talk is for a dividend of 6.75% to 7%. The deal size is expected to come in exactly as it was launched, the source said.

Jernigan intends to list the series B preferred stock on the New York Stock Exchange under the symbol “JCAPPrB.”

UMH Properties Inc. recently priced 6.375% series D cumulative redeemable preferred stock still has not freed to trade.

The Freehold Township, N.J.-based real estate investment trust specializing in manufactured housing communities priced 2 million shares, or $50 million, of $25 par series D cumulative redeemable preferred stock prior to the market open on Thursday.

As the secondary market awaits new deals, two deals that priced earlier in the week were down in early trading Friday.

Teekay Offshore Partners LP’s recently priced 8.875% series E fixed-to-floating rate cumulative redeemable preferred units slipped 7 cents, or 0.28%, to $24.53 in early trading Friday.

The Hamilton, Bermuda-based provider of transportation, storage, towing, and installation maintenance and safety services to the oil industry priced $115 million in the par of $25 units after market close Tuesday.

The series E perpetual cumulative redeemable preferred units have a fixed dividend of 8.875% until Feb. 15, 2025 and will then switch to a floating rate of Libor plus a spread of 640.7 bps.

Teekay intends to list the preferred stock on the New York Stock Exchange under the symbol “TOOPrE.” The notes were freed for OTC trading Wednesday under the temporary ticker “TEOZF.”

Saul Centers Inc.’s depositary shares representing the company’s recently priced 6.125% series D cumulative redeemable preferred stock was also down in early trading Friday.

The depositary shares slipped 28 cents, or 1.13%, to $24.47. The Bethesda, Md.-based real estate investment trust priced $75 million of series D 6.125% cumulative redeemable preferred stock Tuesday to be sold as $25-par depositary shares.

The depositary shares will be listed for trading on the New York Stock Exchange under the symbol “BFSPrD.” The depositary shares freed for OTC trading Wednesday afternoon under the temporary ticker “SAUZP”

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