Taubman, Pebblebrook announce new issues; Ventas Realty lists on NYSE; MPG boosted by sale

By Stephanie N. Rotondo

Phoenix, March 11 - Two new preferred stock deals hit the tape on Monday morning.

"They are small deals," a trader said. Neither issue was performing great either, though he attributed that to people being out for Spring Beak vacations.

Another source said the new issues were "no great bargains."

Taubman Centers Inc. said it was going to sell at least $75 million of series K cumulative redeemable preferreds, with price talk around 6.25%. The deal ended up being doubled and priced right at 6.25%.

Meanwhile, Pebblebrook Hotel Trust announced an offering of series C cumulative redeemable preferreds. A trader said the issue would be non-rated, with price talk around 6.5%.

The deal came late in the day, with $90 million of the preferreds issued at par to yield 6.5%

In the secondary, MPG Office Trust Inc. was trading actively and decidedly higher following news the company had sold a Los Angeles property for $367.5 million.

Overall, a market source said the day was "kind of mixed."

"It was pretty flat, all things considered," he said. He noted that total volume was light.

Taubman prices

Taubman Centers announced and then priced a $150 million offering of 6.25% series K cumulative redeemable preferreds on Monday.

The deal was upsized from $75 million and came in line with talk.

A trader saw a less 70 bid for paper in the midday gray market. At the close, another source pegged the issue at $24.78 bid.

Pebblebrook Hotel Trust also announced plans for a new issue, and pricing came late in the day.

The company sold $90 million of the preferreds at par to yield 6.5%.

That issue was pegged at $24.65 bid at midday.

Ventas' notes list

In other recent issues, Ventas Realty LP's $225 million of 5.45% $25-par senior notes due 2043 listed on the New York Stock Exchange on Monday.

The deal priced Feb. 28. The ticker symbol is "VTRB."

The notes were trading at $25.19 at midday, up from opening levels of $25.13. The notes closed at $25.31.

MPG pops on sale

MPG Office Trust' 7.625% series A cumulative redeemable preferreds (NYSE: MPGPA) jumped nearly 13% on Monday as the company announced the sale of its U.S. Bank Tower and Westlawn Garage in Los Angeles to Overseas Union Enterprise Ltd.

The shares rose $2.99, or 12.97%, to $26.04.

Total consideration for the sale is $367.5 million. The company said that net proceeds will be around $103 million, which will be used for general corporate purposes, including a potential loan rebalancing.

The sale is expected to close by June 28.

The REIT is based in Los Angeles.

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