CAI launches $25 million preferreds; Tristate up, Apollo down; finance names active

By Abigail W. Adams

Portland, Me., March 21 – The primary market remains active in the preferreds space with another preferred offering launched prior to the market open.

CAI International, Inc. plans to price $25 million of $25-par perpetual series A fixed-to-floating rate cumulative redeemable preferred stock after the market close on Thursday with price talk for an initial dividend in the 8.5% area, according to a market source.

The deal size may be upsized and the pricing accelerated, depending on market demand, the source said.

Recently priced preferreds from Apollo Global Management LLC and TriState Capital Holdings Inc. continued to see active trading during Wednesday’s session.

Apollo’s 6.375% $25-par series B non-cumulative perpetual preferred shares continued to lose ground while TriState’s depositary shares representing the company’s 6.75% perpetual fixed-to-floating rate series A non-cumulative preferred stock saw large gains.

As the long-anticipated rate hike from the Federal Reserve was announced on Wednesday, financial industry names were active in the preferreds space with some seeing a slight dip in high-volume trading.

Goldman Sachs Group, Inc.’s depositary shares representing the company’s 5.5% series J fixed-to-floating rate non-cumulative preferred stock saw nearly four times their average trading volume during Wednesday’s session.

Deutsche Bank Contingent Capital Trust II’s 6.55% trust preferred securities saw more than three times their average trading volume.

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