American Homes planning new issue; Summit Hotel prices cumulative deal; 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.

Early in the session, 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 market source later reported that the deal had been launched at $200 million, with pricing at 6.35%. A syndicate source said pricing would come early Wednesday.

A trader saw the issue at $24.85 bid in the early gray market. After the launch, the gray market was seen at $24.90 bid, par offered.

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.

The preferreds closed at $24.90, according to another source.

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 had freed to trade early in Tuesday’s session.

A trader quoted the notes at $24.85 bid, $24.94 offered at mid-morning. By the bell, the notes had run all the way up to $25.25, another source said.

Morgan Stanley, BofA Merrill Lynch, BOSC Inc. and Wells Fargo were the joint bookrunners. The deal came upsized from $100 million and tight to 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 closed at $24.96, up from $24.80 at the open.

Taking out preferreds

Late in the day, Glendale, Calif.-based Public Storage said it was redeeming all of its outstanding 6.35% series R cumulative redeemable preferreds (NYSE: PSAPR).

At the close, the issue was at $25.35, off 7 cents.

The preferreds will be called on July 26 at par plus accrued dividends.

In other news, Rex Energy Corp. is exchanging some of its 6% series A convertible preferred stock into equity, the company said in a regulatory filing on Tuesday.

The preferreds, which trade over the counter, were deemed steady day over day at $6.50. However, that was down from $6.98 at the open.

The stock (Nasdaq: REXX) was meantime off 4 cents at $0.76.

Under the terms of the privately negotiated exchange, the company will issue 730,000 shares of common stock for 102,450 depositary shares representing a 1/100th interest in each preferred share.

Rex Energy is a State College, Pa.-based oil and gas exploration and production company.

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