Preferred stocks finish slightly lower; Oxford Lane plans new issue; Public Storage lists

By Stephanie N. Rotondo

Seattle, June 5 – Preferred stocks were modestly lower for the first trading session of the week, and a trader noted that there was little buzz to get things moving.

The trader said even the primary space was quiet, though he was hearing a possible small financial deal for some time this week.

The chatter might have been referring to Oxford Lane Capital Corp.’s plan to offer series 2024 term preferreds in a deal that was announced after the market closed for the day.

Price talk on the deal, which is being led by Ladenburg Thalmann & Co. Inc., is 6.75%, a market source reported.

The company plans to use the proceeds from the sale to redeem its $50.5 million outstanding 8.125% series 2024 term preferreds, which become redeemable on June 30. The company could also use some of the funds to redeem a portion of its 7.5% series 2023 term preferreds.

As for recently priced issues, Public Storage’s $250 million of 5.15% series F cumulative preferred stock began trading on the New York Stock Exchange on Monday.

The trading symbol is “PSAPrF.” The deal priced May 23.

The paper ended the day at $24.95, which compared to $24.88 at the open. The preferreds were seen at $24.86 at mid-morning.

The issue was the top trader of the day, with about 443,500 shares changing hands.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC ran the books on the offering.

Meanwhile, First Republic Bank’s $200 million of 5.125% series H noncumulative preferreds – a deal priced Wednesday – waned 9 cents to $24.95.

The preferreds were the second most active security of the day, with almost 329,000 shares trading.

The deal is trading under a temporary ticker, “FTPPP.”

And, Colony NorthStar Inc.’s $345 million of 7.15% series I cumulative redeemable preferred stock ended the day at $24.99, a loss of 3 cents.

The issue – which came May 24 – was farther down the active list but was still in play.

The preferreds have a temporary symbol, “CLNYP.”

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