The OTC ticker is PBSTV as noted in the comments
Self storage giant Public Storage (PSA) has priced their new preferred stock issue.
The issue prices at 4.00%.
They are selling 17.4 million shares with another 2.6 million available for over-allotments if needed.
The issue is cumulative, but non-qualfied.
Of course the issue is strongly investment grade with a BBB+ from S&P and A3 from Moodys.
The OTC ticker has not been set tonight, but no doubt will be released early in the morning tomorrow.
The pricing term sheet can be read here.
Trying to come up with a tactical strategy that is practical from an immediate need vs. where these preferreds land price wise in a year or two with respect to the interest rate cycle finally reversing.
I think what is going to work best for me is to just start buying these once or twice a month at or under par as opposed to plopping down a large chunk of money in a one lump sum trade.
There are a bunch of individual floating rate preferreds out there but many are junkier or mortgage REITs or shippers etc. And if you really read the terms, their yields actually drop significantly in 2 or 3 years from now. So reality is, price on those will go down as well.
I’d rather stick with highest quality issuers as possible (for my conservative annuity bucket that is) For you guys willing/able to take on higher risk or yield, God bless you. Those days are long gone for me; I just can’t afford to chase that extra one or two hundred basis points any longer.
PSA-R temp symbol is currently PBSTV.
https://otce.finra.org/otce/dailyList?viewType=Additions
11/10/2021 09:22:19
11/10/2021 00:00:00
PBSTV
Public Storage Dep Shs Repstg 1/1000 Pfd Ben Int Ser R
Hm.
Issue date first… last price last…
Based on a quick searching around these all seem to be the same type of preferred. No maturity date. Not floating. Etc.. Please correct me if I am wrong.
11/9/20 PSA-O 3.9% 26.02
6/7/21 PSA-P 4% 25.24
8/10/21 PSA-Q 3.95% 25.31
I have absolutely no idea what to think after typing this out. Who in their right mind would not sell PSA-O and instantly buy PSA-P?
But based on this new issue being 4% it looks like it will end up at 25.24 if it was sold today.
fc:
The formulaic and behemoth preferred ETFs like PFF won’t sell PSA+O to buy any others, no matter how out-of-whack the pricing gets.
If you want to track the movement in the general level of interest rates in preferred REIT securities, just watch the PSA series. No other securities in the REIT space react faster than these.
They are a joy to trade!
That’s really low…..just sayin