STAG Industrial brings new deal; MFA Financial yet to free; JPMorgan busy on redemption news

By Stephanie N. Rotondo

Phoenix, April 9 - Another real estate investment trust tapped the preferred stock market on Tuesday.

STAG Industrial Inc. said it was planning a sale of series B cumulative preferreds. The deal came after the market closed. The company priced $62.5 million of the preferreds at par to yield 6.625%.

MFA Financial Inc.'s newly priced $175 million issue of 7.5% series B cumulative redeemable preferreds had yet to free up after pricing late Monday, according to a trader.

Meanwhile, JPMorgan Chase & Co. announced late Monday that it will redeem $5 billion of trust and capital securities. Some of those issues were on the active side come Tuesday's session.

STAG's new cumulative paper

STAG Industrial priced $62.5 million of 6.625% series B cumulative redeemable preferreds on Tuesday.

The Boston-based REIT will use the proceeds to pay down a credit facility, to fund acquisitions, for general working capital purposes or a combination thereof.

"I don't know much about them," a trader said of the name, seeing paper quoted wide at $24.75 bid, $24.95 in the midday gray market.

At the close, a market source said he had seen trades as high as par, though he noted that the last trades occurred around midafternoon.

"It got very quiet in the afternoon," he said.

MFA yet to free

Late Monday, MFA Financial brought $175 million of 7.5% series B cumulative redeemable preferreds.

As of midday on Tuesday, the deal had yet to free from the syndicate.

A trader pegged the issue at $24.75 around noon ET.

After the bell, a source quoted the paper at $24.75 bid, $24.85 offered.

MFA intends to use proceeds from the offering to redeem its 8.5% series A cumulative redeemable preferreds. Those preferreds (NYSE: MFAPA) finished the session down 4 cents at $25.31.

The company is a New York-based REIT primarily engaged in investing in residential and non-residential mortgage-backed securities.

JPMorgan active on call

New York-based bank JPMorgan Chase announced late Monday that it will redeem eight series of trust and capital securities on May 8.

The total value of the redemption is about $5 billion.

In reaction to the news, several of the series were on the active side on Tuesday. All of them were softer on the day.

The 7% series J capital securities (NYSE: JPMPJ) were down 52 cents, or 2.01%, at $25.40. The 5.875% series K capital securities (NYSE: JPMPK) were off 2 cents at $25.19.

The 6.875% series X capital securities (NYSE: JPMPW) dropped 30 cents, or 1.17%, to $25.44.

The 5.45% series P noncumulative perpetual preferreds (NYSE: JPMPA) were meantime seen on the day's most active list, with over 1.12 million shares changing hands. The preferreds closed up 8 cents at $25.29.

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