Upsized Digital Realty deal comes tight; Eagle Point bonds free; Public Storage active

By Stephanie N. Rotondo

Seattle, Aug. 2 – Another deal stepped into the preferred stock market on Wednesday as Digital Realty Trust Inc. priced an upsized $200 million issue of 5.25% series J cumulative redeemable preferreds.

Price talk was 5.375%, according to a market source. The deal size was increased from $100 million.

At the end of the day, a source said the paper was “wrapped around $24.75.”

The paper was pegged at $24.70 bid in the gray market at mid-morning.

BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the joint bookrunners.

The preferred stock offering is being done concurrently with a two-tranche sale of bonds. Proceeds from both deals will be used to fund a portion of the repayment, redemption and/or discharge of DuPont Fabros Technology Inc. debt, as well as certain fees and expenses from the merger with DuPont.

As for the week’s other new issues, Eagle Point Credit Co. Inc.’s 6.75% $25-par notes due 2027 – a $27.5 million deal priced late Tuesday – were seen at $25.11 at the close.

The issue freed to trade during the session, according to a trader.

Public Storage’s $300 million of 5.05% series G cumulative preferreds – a deal priced Monday – were again the most actively traded issue of the day.

The preferreds finished the day unchanged at $24.75, on about 1.41 million shares traded. The issue was up a dime at $24.85 at mid-morning.

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