Campus Crest preferreds take a hit; GasLog up; Banc of California stock on ‘high side’

By Christine Van Dusen

Atlanta, April 1 – Campus Crest Communities Inc. saw its preferred stock plummet on Wednesday after announcing a suspension of dividend payments for 2015 during an otherwise quiet session.

The Charlotte, N.C.-based company is focusing on “strategic repositioning, and strengthening our financial and liquidity position,” said Richard Kahlbaugh, Campus Crest non-executive chairman, in a press release. “The board of directors feels that suspending the company’s dividend payment at this time is a prudent step as we enhance our balance sheet and ensure compliance with the covenants in our financial agreements.”

In response, the company’s preferred series A shares fell $3.34 to close at $21.90 on 835,000 shares traded, a market source said.

“It probably should go lower, maybe five points lower than that,” he said.

In other trading on Wednesday, GasLog Ltd.’s new $100 million issue of 8.75% series A cumulative redeemable perpetual preference shares closed at $25.15 after trading at $25.10 earlier in the day and closing Tuesday at $24.80 bid.

The deal priced Monday, upsized from $50 million and at talk.

Investors were also keeping an eye on the new issue from Irvine, Calif.-based Banc of California Inc., an upsized $100 million issue of preferreds that priced at par to yield 7.375%. Initial price talk was 7.375% to 7.5%, according to a market source.

“It was up at par and five cents,” a market source said. “That’s on the high side of the normal range there.”

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