Preferred stocks rise as Fed minutes released; Colony Capital upsizes; GasLog lists, jumps

By Stephanie N. Rotondo

Phoenix, April 8 – Preferred stocks were moving up Wednesday as investors heard the minutes from the Federal Reserve’s March meeting.

The Wells Fargo Hybrid and Preferred Securities index closed up 17 basis points. The index was up 6 bps at mid-morning.

Investors were once again looking for clues from the central bank as to how the economy is really doing and also how that will impact when the Fed plans to raise interest rates. The mid-afternoon release of the minutes showed that the Fed was divided on whether or not to go ahead with a June rate increase.

Investors were also expecting a deal from Colony Capital Inc. to price later in the session – and it did. The Los Angeles-based real estate investment trust announced the offering of series C cumulative redeemable perpetual preferreds late Tuesday, and late Wednesday it was announced that $250 million of the preferreds were sold at par to yield 7.125%.

BofA Merrill Lynch, Barclays, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, RBC Capital Markets and UBS Securities LLC were running the deal.

Among recent deals, GasLog Ltd.’s $100 million of 8.75% series A cumulative redeemable perpetual preference shares began trading on the New York Stock Exchange under the ticker symbol “GLOGPA.”

The shares climbed up to $25.77 at the close, up from $25.40 at mid-morning.

The deal priced March 30.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.