REIT PS Business Parks (PSB) has priced their new, previously announced, preferred stock.
The fixed rate coupon has been set at 4.875%. This pricing doesn’t seem logical given that sister company Public Storage (PSA) just sold a new issue at the same coupon. Public Storage is rated a notch better than PS Business Parks. In the end it is what it is—wish they would price like I want them too.
It is amazing how strong the new Public Storage 4.875% issue (PSA-I) has traded which may well have contributed to this low coupon from PS Business Parks. The Public Storage issue closed at $26.26 today.
The issue will trade OTC Grey market tomorrow under ticker PSPBZ. At the right price we will purchase some for a flip–maybe we can squeeze 30-40 cents out of it.
The SEC pricing term sheet has not yet been filed but the company press release can be read here.