Morning Commentary: American Homes deal on tap; Summit Hotel prices new issue; BOK frees to trade

By Stephanie N. Rotondo

Seattle, June 21 – American Homes 4 Rent added a deal to the preferred stock new issue calendar on Tuesday.

The real estate investment trust said it planned to sell at least $100 million of series E cumulative redeemable preferred stock, talked in a 6.375% to 6.5% range.

A trader saw the issue at $24.85 bid in the early gray market.

Wells Fargo Securities LLC, BofA Merrill Lynch, Morgan Stanley & Co. LLC and Raymond James & Associates Inc. are leading the books.

Also occurring early Tuesday, Summit Hotel Properties Inc. announced it had priced $75 million of 6.45% series D cumulative redeemable preferreds.

The deal was first announced on Monday with 6.5% price talk.

A trader said the issue was already trading under a temporary symbol, “SMTTP.” He pegged the paper at $24.94 bid.

BofA Merrill Lynch, Raymond James, Baird Capital Inc. and RBC Capital Markets ran the deal.

From Monday’s business, BOK Financial Corp.’s $150 million of 5.375% $25-par subordinated notes due 2056 freed to trade early in Tuesday’s session.

A trader quoted the notes at $24.85 bid, $24.94 offered.

Morgan Stanley, BofA Merrill Lynch, BOSC Inc. and Wells Fargo were the joint bookrunners. The deal came upsized from $100 million and tighter than the 5.5% to 5.625% price talk.

In addition to these deals, a trader said he was “still hearing about three more deals for this week.” However, he noted that the planned issues are “small, no selling groups. So that’s frustrating.”

Meanwhile, Western Alliance Bancorporation’s $175 million of 6.25% $25-par subordinated debentures due 2056 – an issue priced June 9 – listed on the New York Stock Exchange under the ticker “WALA.”

The debentures were seen at $24.80 at mid-morning, unchanged from opening levels.

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