Spirit Realty Capital brings first preferred stock issue; Investors Real Estate prices

By Stephanie N. Rotondo

Seattle, Sept. 26 – The preferred stock primary market continued to see new issues come to market on Tuesday.

Spirit Realty Capital Inc. brought a $150 million offering 6% series A cumulative redeemable preferreds after the close.

The deal came in line with price talk. The sale marks the company’s first entry into the world of preferred stock.

At day’s end, a market source pegged the paper at $24.92 bid, $24.95 offered in the gray market.

A trader said the paper was bid for at $24.65 in the early gray market, though he added that there were “no real offers” for the preferreds.

Morgan Stanley & Co. LLC, BofA Merrill Lynch and Wells Fargo Securities LLC are running the books.

The company plans to use proceeds to pay down its revolving credit facility.

Elsewhere in the REIT realm, Investors Real Estate Trust announced the pricing of its series C cumulative redeemable preferreds ahead of the open.

The deal was first announced on Monday.

The company sold $100 million of the preferreds at par to yield 6.625%. That was in the middle of the 6.25% to 6.75% price talk.

The issue freed to trade around midday, getting a temporary ticker of “IRRTP.”

The preferreds finished the day at $24.75, with about 2.08 million shares trading during the session.

BMO Capital Markets and Raymond James & Associates Inc. were the bookrunners.

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