Morning Commentary: Apollo Global launches $150 million preferreds; GCI Liberty active

By Abigail W. Adams

Portland, Me., March 12 – The primary market stands poised for another busy week with the launching of a new offering prior to the market open on Monday.

Apollo Global Management LLC plans to price a $150 million offering of perpetual $25-par series B non-cumulative preferred shares after the market close on Monday with price talk for a dividend in the 6.375% area, according to a market source and a 424B5 filing with the Securities and Exchange Commission.

The preferred shares are freely callable at par plus declared unpaid dividends after March 15, 2023. The preferred shares may be called in whole prior to March 15, 2023 upon a change of control, tax exemption or rating agency event at $25.25 plus declared unpaid dividends.

The series B preferred shares from the New York-based alternative investment manager will be listed on the New York Stock Exchange under the symbol “APOPrB.”

After a lull in activity for much of February, the primary market saw an uptick in activity last week with several new deals pricing.

GCI Liberty, Inc.’s newly issued series A cumulative redeemable preferred shares saw high-volume trading early Monday. The preferred shares, which trade under the ticker “GLIBP,” were seen at $22.60 early in the session.

GCI Liberty issued $182.5 million of new preferred shares as part of a series of transactions that involved the acquisition of General Communication, Inc. and the spinoff of GCI Liberty.

The preferreds were issued as part of the conversion of GCI Liberty’s former class A-1 common stock and class B-1 common stock on March 8.

Each share was converted into 0.63 of GCI Liberty common stock, which trade under the ticker “GLIBA,” and 0.2 of a share of the series A cumulative redeemable preferred shares.

The new preferreds have a $25.00 liquidation preference, pay a dividend of 5% that steps up to 7% when GCI Liberty is reincorporated in Delaware and have a 21-year term.

Liberty Interactive no longer holds an equity interest in GCI Liberty.

QTS Realty Trust Inc.’s recently priced 7.125% series A cumulative redeemable perpetual preferred stock was up early in Monday’s session. The preferred stock, which freed to trade for OTC market business under the ticker “QTTRP,” was seen at $24.78, an increase of 3 cents or 0.12%.

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