TriState on tap; Apollo Global, QTS Realty hit par; several recent deals ‘under water’

By Abigail W. Adams

Portland, Me., March 14 – Trading volume remained light in the preferreds space on Wednesday, which market sources pointed to as a factor for several outstanding issuances trading at a discount.

“A lot of stuff is getting beaten up because there’s no volume,” a market source said.

While overall volume remained low, Apollo Global Management LLC’s recently priced 6.375% $25-par perpetual preferred shares continued to see high-volume trading during their second full trading session after pricing on Monday. The preferreds closed Wednesday at par.

QTS Realty Trust Inc.’s recently priced 7.125% series A cumulative redeemable perpetual preferred stock also closed Wednesday at par. It was the first time the preferreds have traded up to their liquidation preference since pricing on March 8.

While Apollo and QTS Realty closed Wednesday at par, several other recent deals and outstanding issuances remain “significantly under water,” a market source said.

Cedar Realty Trust Inc.’s 6.5% series C cumulative redeemable preferred stock was significantly below water after pricing an add-on in mid-December. The trading prices of the preferreds is so low they almost have the same yield as Cedar Realty’s 7.25% series B cumulative preferred stock, a market source said.

While the performance of recent deals has been mixed, TriState Capital Holdings, Inc.’s offering of $35 million of perpetual fixed-to-floating rate series A non-cumulative preferred stock is expected to price on Thursday.

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