Primary sees new deal from American Homes; SCE Trust-linked issues busy, better

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 sold $115 million of 5.875% series G cumulative redeemable preferred shares.

Initial price talk was 5.875% to 6%. The deal was originally expected to be $100 million.

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

Shortly before pricing, the preferreds were seen at $24.92 bid, $24.95 offered in the gray market. Post-pricing, the issue was pegged at $24.95 bid, $24.97 offered.

The paper becomes redeemable on July 17, 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 that issue was limited.

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

The Wells Fargo Hybrid and Preferred Securities index was down 3 basis points, while the U.S. iShares Preferred Stock ETF was up 13 bps.

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

The preferreds were up 17 cents at $25.15, with almost 585,000 shares changing hands.

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