Morning Commentary: Global Net Lease, Spark reopen preferreds; Freddie, Fannie decline continues

By Abigail W. Adams

Portland, Me., Jan. 23 – Global Net Lease, Inc. and Spark Energy, Inc. are reopening their preferred stock offerings.

Global Net plans to sell an additional amount of its $25-par 7.25% series A perpetual cumulative redeemable preferred stock issued in September and December of 2017.

Global Net sold $106 million of its series A preferred stock in the initial pricing of the offering in September 2017 and an additional $28.75 million in a reopening in December.

The New York-based real estate investment trust’s series A preferred stock is listed on the New York Stock Exchange under the symbol “GNLPrA.” The preferred stock was up 5 cents, or 0.20%, to $24.81 in early trading on Tuesday.

Spark Energy is reopening its $25-par 8.75% series A fixed-to-floating rate perpetual cumulative redeemable preferred stock.

The preferred stock was initially priced in March 2017 with $35 million sold. Additional preferreds have been issued through an at-the-market program, raising the total to $42.6 million.

The preferreds will carry a dividend of 8.75% until April 15, 2022 and then switch to a dividend of Libor plus 657.8 basis points.

The series A preferred stock is listed on Nasdaq under the symbol “SPKEP.” The preferred stock was down 1.2479 cents, or 4.67%, to $25.45 in early trading on Tuesday.

Fannie Mae’s and Freddie Mac’s embattled preferred stock continued to trade down as Congress debates the future of the government-sponsored enterprises.

Fannie Mae’s series O variable-rate preferred stock, which trades on the OTC markets under the ticker “FNMFN,” was down 80 cents, or 6.06%, to $12.40 in early trading Tuesday.

Fannie Mae’s 6.75% series Q non-cumulative preferred stock, which trades on the OTC markets under the ticker “FNMAI,” was down 35 cents, or 5.19%, to $6.40 in early trading.

Freddie Mac’s 5.66% non-cumulative perpetual preferred stock, which trades on OTC markets under the ticker “FMCKN,” was down 23 cents, or 3.68%, to $6.02 in early trading.

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