PS Business Parks Prices New Preferred

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.

2 thoughts on “PS Business Parks Prices New Preferred”

  1. All true but the point is the 5.20’s hit rock bottom of approx 18.50 in dec 2018.

    1 way I ‘group’ pfd’s is by where they trade. PS Buss Parks trade near the top tier just a notch below. But dec’s trading show real weakness AND…the question is can you live on 4 7/8’s if rates move against us?

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