Morning Commentary: Primary calendar builds up; Plains All American selling preferred units

By Stephanie N. Rotondo

Seattle, Oct. 2 – The preferred stock primary was revving up on Monday, with three new deals getting added to the calendar.

Plains All American Pipeline LP said it was selling series B fixed-to-floating rate cumulative redeemable preferred units.

J.P. Morgan Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are running the books.

The units will not be listed.

Meanwhile, Seaspan Corp. said it was offering $25-par senior unsecured notes due 2027 via RBC Capital Markets LLC and Stifel Nicolaus & Co. Inc.

Seaspan’s existing preferred issues were trending up on the announcement.

The 8.2% series G cumulative redeemable preferreds (NYSE: SSWPrG) were up 11 cents at $24.31, while the 7.875% series H cumulative redeemable preferreds (NYSE: SSWPrH) were up 6 cents at $23.78.

The 7.95% series D cumulative redeemable preferreds (NYSE: SSWPrD) were 13 cents higher at mid-morning, trading at $24.08.

And, Sotherly Hotels Inc. said it was planning an underwritten public offering of series C cumulative redeemable preferred stock.

Sandler O’Neill + Partners LP and Janney Montgomery Scott LLC are acting as joint bookrunners.

The company said it will use the funds to redeem in full its 7% $25-par notes due 2019 (Nasdaq: SOHOM).

The notes were off a penny in early dealings, trading at $25.52.

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