Morning Commentary: BancorpSouth prices; Bluerock details offering; Compass under par

By James McCandless

San Antonio, Nov. 14 – The preferred space began Thursday with steady primary activity as the Wells Fargo Hybrid & Preferred Securities Financial index started better by 0.23%.

In the primary market, BancorpSouth Bank priced $150 million of 5.5% series A non-cumulative perpetual preferred stock late Wednesday.

The deal carries a $22.5 million greenshoe.

Keefe, Bruyette & Woods and Raymond James & Associates, Inc. are joint bookrunning managers for the offering.

BancorpSouth also priced $300 million of 4.125% fixed-to-floating rate subordinated notes due Nov. 20, 2029.

Also, Bluerock Residential Growth REIT, Inc. detailed its offering of up to $800 million series T redeemable preferred stock with a dividend of 6.15%.

Up to $300 million of the $25-par preferreds are being offered through the company’s dividend reinvestment plan.

Bluerock Capital Markets, LLC is the dealer manager.

The preferreds are redeemable after three years at par. Prior to that, the preferreds are redeemable by the holders at par minus a redemption fee for five years, after the death of the holder or within 60 days after a change-of-control event at par.

Leading in the secondary space, middle market investor Compass Diversified Holdings LLC’s new $100 million 7.875% series C cumulative preferred shares began trading under par as the session started.

The preferreds, trading under the temporary symbol “CMPSP,” were spotted at $24.70 on volume of about 311,000 shares.

Meanwhile, real estate investment trust PS Business Parks, Inc.’s 4.875% series Z cumulative preferred stock was active but unmoved at the open.

The preferreds (NYSE: PSBPrZ) were level at $24.70 with about 146,000 shares trading.

Elsewhere, in the finance space, JPMorgan Chase & Co.’s 4.75% series GG non-cumulative perpetual preferred stock was seen improving.

The preferreds (NYSE: JPMPrJ) were adding 2 cents to $25.03 on volume of about 139,000 shares.

Sector peer Citizens Financial Group, Inc.’s 5% series E fixed-rate non-cumulative perpetual preferreds followed the positive trend.

The preferreds (NYSE: CFGPrE) were rising 5 cents to $25.05 with about 65,000 shares trading.

In shipping, Triton International Ltd.’s 7.275% series C cumulative redeemable perpetual preference shares opened on a positive swing.

The preferreds (NYSE: TRTNPrC) were gaining 2 cents to $25.42 on volume of about 65,000 shares.

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