Public Storage upsizes, prices new issue; Southern California Edison, State Street list

By Stephanie N. Rotondo

Phoenix, March 10 - The preferred stock market was starting the week slightly soft, according to the Wells Fargo Hybrid and Preferred Securities index.

The index was off 3 basis points at mid-morning, increasing to down 6 bps by the bell.

A trader said Public Storage late in the day priced an upsized $225 million of cumulative perpetual preferred shares at par to yield 6.375%.

The company was heard earlier in the day with an offering of "at least $150 million" of the preferreds with price talk at 6.5%. Around the same time, the paper had been offered at $24.75 in the gray market.

Around mid-afternoon, the trader said that the deal had been upsized to $225 million and tightened to 6.375%. At that point, the offering was being quoted at $24.75 bid, $24.85 offered.

"It's in good shape," the trader said. He noted that there was "not a lot of institutional demand" for the shares, though retail investors seemed interested.

BofA Merrill Lynch, Morgan Stanley & Co. LLC, UBS Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Glendale, Calif.-based real estate investment trust intends to use the proceeds for debt repayment.

In other Public Storage issues, the 6.5% series Q cumulative preferreds (NYSE: PSAPQ) are slated to go ex-dividend on Wednesday.

Holders of record will receive 40.62 cents per share.

The preferreds ended the day off 16 cents at $25.50.

New deals list

Southern California Edison Co.'s $275 million of 5.75% fixed-to-floating rate trust preference securities and State Street Corp.'s $750 million of 5.9% series D fixed-to-floating rate noncumulative perpetual preferreds were admitted to the New York Stock Exchange on Monday.

Southern California Edison priced Feb. 27, and State Street came Feb. 25.

Southern California Edison's ticker symbol is "SCEPH." The State Street preferreds listed under "STTPD."

Sothern California Edison was trading at $25.10 early in the session, on par with the opening level price. However, it came in by the end of the day to trade at $25.03.

State Street was meantime pegged at $25.38 early versus an open of $25.45. The paper finished at $25.21.

RBS mixed

Royal Bank of Scotland Group plc's 7.25% series T noncumulative dollar preference shares (NYSE: RBSPT) traded actively and higher on Monday, bucking the day's downward trend.

The preference shares closed at $25.12, up 2 cents. Nearly 865,000 shares traded during the session.

The Edinburgh-based bank's 6.25% series P noncumulative dollar preference shares (NYSE: RBSPP) are scheduled to trade ex-dividend on Wednesday. Holders of the shares will receive $39.06 cents per share.

The preferreds closed at $22.22, off 2 cents.

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