BOK deal comes upsized, tight to talk; Summit Hotel added to calendar; pipeline growing

By Stephanie N. Rotondo

Seattle, June 20 – The preferred stock primary market was starting to pick up once again on Monday, as two new deals were announced.

Additionally, a trader said he was hearing there could be four to six more new issues coming during the week.

As for Monday’s session, BOK Financial Corp. brought a $150 million offering of 5.375% 40-year $25-par subordinated notes.

The deal was upsized from $100 million. Price talk was 5.5% to 5.625%.

Post-pricing, the deal was seen at $24.90 bid, $24.95 offered.

The issue is non-callable for five years

The Tulsa-based financial holding company will use the proceeds to help fund a $102.5 million cash payout to shareholders of MBT Bancshares upon closing of a planned acquisition of the company.

Meanwhile, Summit Hotel Properties Inc. said it was selling series D cumulative redeemable preferred stock.

Price talk was 6.5%, a market source reported.

“That’s a little light on yield for me,” a trader said.

Another market source quoted the issue at $24.90 bid.

Pricing information was unavailable as of 6:30 p.m. ET.

The Austin, Texas-based real estate investment trust plans to use proceeds for general corporate purposes, which may include the redemption of the 9.25% series A cumulative redeemable preferreds (NYSE: INNPA).

That issue becomes callable Oct. 28.

That paper was off a nickel at $25.79.

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