Morning Commentary: American Homes adds deal to new issue calendar; SCE Trust trades over par

By Stephanie N. Rotondo

Seattle, July 10 – The preferred stock market was kicking the new week off with a new issue, as American Homes 4 Rent announced plans to sell series G preferred shares.

With the deal just announced at mid-morning, a trader said pricing details were not yet available.

Wells Fargo Securities LLC, BofA Merrill Lynch and Raymond James are running the deal.

There is a 15% over-allotment option. The paper becomes redeemable in July 2022 or upon a change of control.

Proceeds will be used in part to pay down debt.

As for the Agoura Hills, Calif.-based real estate investment trust’s existing issues, the 5% series B cumulative participating preferred shares (NYSE: AMHPrB) were up 3 cents at $28.45.

However, trading in the issue was limited.

In fact, overall trading continued to be a little light. Market indicators were also mixed in early dealings.

The Wells Fargo Hybrid and Preferred Securities index was down 3 basis points at mid-morning. The U.S. iShares Preferred Stock ETF was up 15 bps.

Southern California Edison’s SCE Trust IV-linked 5% cumulative trust preference securities (NYSE: SCEPrL) were the most active securities in early trading, as the paper moved above par.

The preferreds were up 18 cents at $25.16.

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