Campus Crest, Box Ships plan add-on offerings; Tsakos admitted to NYSE; Schwab, PNC busy

By Stephanie N. Rotondo

Phoenix, Oct. 3 - The preferred stock market was drifting lower in midday trading on Thursday, the third day of a partial government shutdown. Around noon ET, the Wells Fargo Hybrid and Preferred Securities index was off 13 basis points. By the end of the day, that had widened to down 22 bps.

Despite the weakness, both Campus Crest Communities Inc. and Box Ships Inc. brought add-on offerings to the marketplace.

For its part, Campus Crest said it was planning to sell at least $50 million more of its 8% series A cumulative redeemable preferreds.

"For a reopening, that's a lot," a market source said.

The company originally sold $50 million of the preferreds - $57.5 million including the greenshoe - on Feb. 2, 2012.

On the news of the offering, the preferred shares (NYSE: CCGPA) fell $1.34, or 5.16%, to $24.61.

Box Ships meantime said it would offer additional 9% series C cumulative redeemable preferreds.

The company initially sold $13.95 million of the preferreds on July 26 at a discounted price of $24.00 per share.

That preferred stock (NYSE: TEUPC) was trading up at midday, putting on 36 cents, or 1.46%, to trade just over par. However, by the end of business the paper had dropped 30 cents, or 1.22%, to $24.35.

Neither deals appeared to have priced as of the market's close.

Among recently priced deals, Tsakos Energy Navigation Ltd.'s $50 million of 8.875% series C cumulative redeemable perpetual preferred shares - a deal that came Sept. 26 and freed to trade on Tuesday - has already listed on the New York Stock Exchange.

The ticker symbol is "TNPPC." Paper was trading at $24.43 at midday, versus opening levels around $24.90.

The issue closed at $24.20.

Schwab, PNC active

A market source said he was not sure why Charles Schwab Corp.'s 6% series B noncumulative perpetual preferreds (NYSE: SCHWPB) were dominating trading on Thursday.

Despite there being a lack of fresh news, the preferreds saw trading of over 1.06 million shares, falling 21 cents to $22.18.

There was also no fresh news out on PNC Financial Services Group Inc., but its 6.125% series P fixed-to-floating rate noncumulative perpetual preferreds (NYSE: PNCPP) were also trading busily, with over 1.05 million shares changing hands.

The issue finished the session up 7 cents at $25.27.

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