Midday Commentary: STAG Industrial to bring new deal; MFA Financial yet to free; JPMorgan busy

By Stephanie N. Rotondo

Phoenix, April 9 - Another real estate investment trust was tapping the preferred stock market on Tuesday.

STAG Industrial Inc. said it was planning a sale of series B cumulative preferreds, the proceeds of which would be used to pay down a credit facility, to fund acquisitions, for general working capital purposes or a combination thereof.

"I don't know much about them," a trader said of the name, seeing paper quoted wide at $24.75 bid, $24.95 offered in the midday gray market.

MFA Financial Inc.'s newly priced $175 million issue of 7.5% series B cumulative redeemable preferreds had yet to free up after pricing late Monday, according to the trader.

He pegged that issue at $24.75.

MFA intends to use proceeds from the offering to redeem its 8.5% series A cumulative redeemable preferreds. Those preferreds (NYSE: MFAPA) were trading up 12 cents at midday to $25.47.

Meanwhile, J.P. Morgan Chase & Co. announced late Monday that it was redeeming $5 billion of trust and capital securities. Some of those issues were on the active side come Tuesday's session.

The 7% series J capital securities (NYSE: JPMPJ) were down 52 cents, or 2.01%, at midday to $25.40. The 5.875% series K capital securities (NYSE: JPMPK) were off a penny at $25.20.

The eight series of securities will be redeemed on May 8.

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