Digital Realty frees, trades lower; recent issues remain in focus; Fannie Mae dips

By Stephanie N. Rotondo

Seattle, Aug. 3 – There continued to be a new deal focus in the preferred stock market on Thursday.

Digital Realty Trust Inc.’s $200 million offering of 5.25% series J cumulative redeemable preferreds – a deal priced late Wednesday – freed to trade in the early hours of the session.

The paper was assigned a temporary trading symbol, “DGGTP.”

One market source saw the issue ending at $24.69.

“Ouch for those par buyers,” he said. “Another max yield to underwriter calculation.”

Nearly 5.52 million of the preferreds were exchanged during the day.

The deal came tighter than the 5.375% price talk and upsized from $100 million.

BofA Merrill Lynch, Citigroup Global Markets Inc. and Wells Fargo Securities LLC ran the books.

From Tuesday’s business, Eagle Point Credit Co. Inc.’s $27.5 million of 6.75% $25-par notes due 2027 were pegged at $25.125 at day’s end.

However, a source noted that the volume weighted average price was $25.025.

The issue freed to trade during the midweek session.

Away from new and recent deals, Fannie Mae’s preferreds were in play on Thursday following the release of the agency’s latest quarterly results.

And while the bottom line beat year-ago figures, the preferreds were losing ground.

The 8.25% series S fixed-to-floating rate noncumulative preferreds (OTCBB: FNMAS) were down a dime, or 1.45%, at $6.80.

The 8.25% series T noncumulative preferreds (OTCBB: FNMAT) dipped 2 cents to $6.67.

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