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Enstar prices offering; Braemar’s new preferreds below par; Digital Realty improves
By James McCandless
San Antonio, Nov. 14 – The preferred market saw more focus on newer issues on a largely negative trading day.
Enstar Group Ltd. priced $110 million of $25-par series E perpetual non-cumulative preference shares (BB+/BB+) at par with a dividend of 7%.
Meanwhile, Braemar Hotels & Resorts, Inc.’s $40 million 8.25% series D cumulative perpetual preferred stock ended its first trading day below par.
Real estate investment trust Digital Realty Trust, Inc.’s 7.375% series H cumulative redeemable preferreds improved.
In finance, JPMorgan Chase & Co.’s 5.75% series DD non-cumulative preferred stock ended lower.
Goldman Sachs Group, Inc.’s 5.5% fixed-to-floating rate non-cumulative perpetual preferreds also saw weakness.
Shipping name GasLog Partners LP’s $100 million 8.5% series C cumulative redeemable perpetual fixed-to-floating rate preference units rose.
Enstar’s deal
In the primary market, Enstar sold $110 million of $25-par series E perpetual non-cumulative preference shares (BB+/BB+) at par with a dividend of 7%.
The deal, announced Wednesday morning, came in above price talk of $100 million and at the low end of talk for a dividend of 7% to 7.125%.
Wells Fargo Securities LLC, Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are the joint bookrunners.
There is a $16.5 million greenshoe.
Braemar under par
Braemar’s new 8.25% series D cumulative perpetual preferred stock ended its first trading day below par.
The preferreds, trading under the temporary symbol “BHRPP,” ended Wednesday at $24.50 on volume of about 1 million shares.
The deal priced on Nov. 13.
Digital Realty rises
In the secondary market, real estate investment trust Digital Realty’s 7.375% series H cumulative redeemable preferreds were seen improving.
The preferreds (NYSE: DLRPrH) were up 4 cents to close at $25.54 with about 575,000 shares trading.
JPMorgan lower
In the finance sector, JPMorgan’s 5.75% series DD non-cumulative preferred stock led a broad market decline.
The preferreds (NYSE: JPMPrD) were down 10 cents to close at $24.79 on volume of about 541,000 shares.
On Tuesday, the preferreds lost 4 cents.
Goldman Sachs’ 5.5% fixed-to-floating rate non-cumulative perpetual preferreds were also trending lower.
The preferreds (NYSE: GSPrJ) were down 25 cents to close at $24.80 with about 267,000 shares trading.
GasLog up
Meanwhile, natural gas shipping name GasLog’s $100 million 8.5% series C cumulative redeemable perpetual fixed-to-floating rate preference units gained in trading.
The preferreds, trading under the temporary symbol “GLOUF,” were up 5 cents to $24.55 on volume of about 475,000 shares.
On Tuesday, the preferreds added 4 cents.
Indexes down
The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.18% at the end of trading, reversing a 0.03% gain at the start of Wednesday’s session.
The iShares US Preferred Stock ETF was down 9 cents to $35.82.
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