Government Properties set to free; American Homes gets temporary symbol; agencies improve

By Stephanie N. Rotondo

Seattle, May 20 – Recently priced preferred stock issues remained in focus in Friday trading.

Though no new issues were announced during the session, a trader said that “people are saying [the deal flow] is just going to keep going.”

From Thursday’s business, Government Properties Income Trust’s $300 million of 5.875% $25-par senior unsecured notes due 2046 were expected to free at some point Friday.

He pegged the issue at $24.75 bid, $24.85 offered at mid-morning.

W.R. Berkley Corp.’s $290 million of 5.75% $25-par subordinated debentures due 2056 – a deal priced Wednesday – were meantime seen in a $24.93 to $24.97 context.

Also from Wednesday’s business, LaSalle Hotel Properties’ $150 million of 6.3% series J cumulative preferreds were offered at $25.05.

And, American Homes 4 Rent’s $225 million of 6.5% series D cumulative redeemable preferreds were placed at par bid, $25.14 offered early in the day.

The preferreds closed at $25.13, up 3 cents.

The issue, which came early Tuesday after being announced Monday, is trading under the temporary ticker symbol “AMHHP.”

The Wells Fargo Hybrid and Preferred Securities index finished 29 bps better.

While recently priced deals did get their fair share of attention, trading in Fannie Mae and Freddie Mac dominated the session.

The GSEs’ preferreds were on the rise during the day, as more court documents in a case challenging the government’s “net worth sweep” of the agencies’ profits were unsealed.

© 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.