New issues churning out; Vornado plans deal; Ashford brings $75 million; Entergy declines

By Stephanie N. Rotondo

Portland, Ore., April 13 - New preferred stock issuance continued to ramp up Wednesday as Vornado Realty Trust announced plans for an issue of series J cumulative redeemable preferreds.

The New York-based real estate investment trust said it was planning to sell the preferreds at $25 per share.

According to one market source, the deal was expected to bring about 4 million preferreds, or $100 million. However, he said he heard the deal was upsized to 7 million preferreds, or $175 million.

Pricing is expected on Thursday. Price talk is 6.875% to 7%.

Another market source said the preferreds were being quoted in the gray market at less 25 cents bid, less 10 cents offered.

The deal follows new issues launched by Entergy Mississippi Inc. - which priced Tuesday - and one by Ashford Hospitality Trust Inc. The latter issue was announced Monday and priced Wednesday.

Overall, a trader said the preferred market was "more green than red" on Wednesday, pushed up in part by a new report published by CreditSights Inc.

"It's been a big talking point," the trader said of the report that dealt with new banking regulations and how that would affect trust preferreds and straight preferreds. The trader noted that his firm had been making many of the same points for the last six months but conceded that the "independent" review might lend more credibility.

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