2 Favorites to Be Called For Redemption

It looks like the Axis Capital 5.50% perpetual preferred (AXS-D) will be called soon (no official notice has yet been made).

Axis Specialty Finance LLC has announced a new $1000 Fixed-Rate Reset Junior Subordinated Note issue with the stated “use of proceeds” for “redemption of all of our outstanding 5.50% Series D preferred shares”.

This issue was one of the issues we owned as it traded right in the $25 area and had little to no call risk (i.e. money would not be lost on a call). It is now trading at $25.07 after going ex-dividend on 11/14 with a pay date of tomorrow. Assuming the call notice will give 30 days notice the accrued dividend should be in the 11-14 cent range meaning a value of $25.11 or 25.14.

Additionally Kimco Realty (KIM) has announced the redemption of the 5.50% KIM-J issue on 12/31/2019. We did not own this issue, but had studied it for a potential purchase. The issue will be redeemed at $25.29028 as it will have about 2.5 months of accrued dividends included as the last payment date was 10/15/2019. The notice is here.

6 thoughts on “2 Favorites to Be Called For Redemption”

  1. I can’t figure out why MFO has not been called yet. It’s unbelievable, they could have saved lots of money: it is callable since April 2017!

  2. CUSIP: 74460W792
    Description: PUBLIC STORAGE 5.875DPRP PFD A 5.87500%
    Call Date: 2019-12-30
    Just got this

  3. Is sanity returning to the market and the bubble starting to come out of the market?

    I took out my weaker players. QVCC(at a 0.12 cent profit), SJIJ(got 1st dividend capture and small profit), and terminated AXS/D at $25.07. Might have better use for AXS/D cash. At least I want flexibility.

    Good time to be holding real quality at a good coupon rate.

    Still holding WRB/B, COF/P, and WFC/T and TDA (not great quality but important business for some) for dividend captures.

  4. I’m holding AXS E. It probably won’t be far behind. Oh well, I received nice dividends and will reap a capital gain as well.

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