Sotherly begins at-the-market offering; Gladstone redeems series B, C preferreds

By James McCandless

San Antonio, Aug. 31 – The preferred space saw an uptick in activity as the market headed for the close on Friday.

Sotherly Hotels Inc. started an at-the-market offering of up to $10 million of its $25-par 7.875% series C cumulative redeemable preferred stock.

Gladstone Investment Corp. redeemed all outstanding shares of its 6.75% series B and 6.5% series C cumulative term preferred stock.

Bank of America Corp.’s 5.875% series HH non-cumulative preferred stock improved, ending the week on top of preferred trading.

U.S. Bancorp’s $575 million of 5.5% series K non-cumulative perpetual preferred stock jumped up.

KeyCorp’s 5.65% series F perpetual non-cumulative preferred stock rose.

Sotherly begins offering

Sotherly Hotels said it has entered into an agreement to sell up to $10 million of its $25-par 7.875% series C cumulative redeemable preferred stock.

The offering also includes up to $5 million of common stock.

The at-the-market sales agreement lists Sandler O’Neill + Partners, LP as the distributor (see related story elsewhere in this issue).

Gladstone redeems preferreds

Gladstone redeemed all outstanding shares of its 6.75% series B cumulative term preferred stock and its 6.5% series C cumulative term preferred stock.

The preferred stock was redeemed on Aug. 31 at a redemption price of $25.00 per share for a redemption price of about $81.7 million.

The redemption was made after the payment of the August dividend to holders of record on Aug. 21 (see related story elsewhere in this issue).

Bank of America gains

Bank of America’s 5.875% series HH non-cumulative preferred stock improved, leading secondary activity to end the week.

The preferreds (NYSE: BACPrK) were up 13 cents to close at $25.74 on volume of about 451,000 shares.

U.S. Bancorp rises

U.S. Bancorp’s 5.5% series K non-cumulative perpetual preferred stock rose again.

The preferreds (NYSE: USBPrP) were up 17 cents to close at $25.61 with about 441,000 shares trading.

On Thursday, the preferreds gained 7 cents.

KeyCorp up

KeyCorp’s 5.65% series F perpetual non-cumulative preferred stock gained.

The preferreds (NYSE: KEYPrJ) were up 7 cents to close at $25.08 on volume of about 387,000 shares.

Indexes mixed

The Wells Fargo Hybrid & Preferred Securities Financial index was down 0.03% at market close after starting level early Friday.

The iShares US Preferred Stock ETF was up 11 cents to $37.94.

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