As likely holders of either the BB&T Corp or Suntrust Banks preferreds already know the company’s have merged.
We have updated lists and security detail pages to reflect new tickers. The company is now named Truist Financial (TFC).
Month: December 2019
Cash Machine REIT Public Storage Announces New Preferred
Storage REIT Public Storage (PSA) has announced the issuance of a perpetual preferred.
Previously the company had announced the redemption of the 5.875% PSA-A issue which became redeemable on 12/2. The redemption date is 12/30/2019.
The company had sold a preferred issue on 9/5/2019 with a coupon of 4.875%, PSA-I, and a 4.70% issue PSA-J on 11/5/2019 so we know this will be a darned low coupon.
All of their outstanding issues can be seen here.
The issue will be investment grade.
The preliminary prospectus can be found here
Thanks to mcg, EarlyBird and if you prefer–all right on top of the announcement.
Kayne Anderson MLP Prepares for Redemption
Closed end fund, Kayne Anderson MLP (KYN) is preparing for redemption of their 3.50% monthly paying term preferred shares.
They have announced the private placement of mandatory redemption preferreds in amounts that are adequate to redeem the KYN-F shares.
The KYN-F shares must be redeemed on 4/15/2020 (or before). Shares pay a 7 cent/month dividend and currently are trading at $25.12.
The company press release on the private placement can be found here.
This is NOT a notice of redemption of KYN-F.
Disclosure–I own a large position in KYN-F.
Gabelli Equity Trust Prices New Preferred
The Gabelli Equity Trust (GAB), a closed end fund, has announced the pricing of their new issue of perpetual preferred stock.
As the SEC paperwork has not been filed many details are unknown–we will post details when they are released.
The issue prices at 5%. 4 million shares are being sold.
Quiet Markets While The FED Meets
It is most interesting that since the FED claimed they are on hold until we see inflation news, markets are not paying too much attention at all to them.
They began meeting today and tomorrow they will make an announcement on the Fed Funds Rate–certainly any change, in any direction, would be one heck of a surprise to everyone.
Just watching the 10 year treasury–while no one is talking much on the meeting it is certain the bond traders are waiting for the official ‘news’–which will be no news.
The 10 year treasury opened the week at 1.83% and hasn’t moved more than 2 basis points in either direction in 2 days–that is pretty unusual.
Personally I have barely peaked at the personal accounts–although moments ago I looked for the 1st time today and there is some upward creep–I’m talking a few cents–maybe a dime in an issue or two and as always I am just fine with quiet markets–certainly excitement of some sort will come before the month is out.
CEF Gabelli Equity Trust to Sell New Preferred
Gabelli Equity Trust (GAB) has announced the sale of a new issue of perpetual preferred stock.
The CEF had already announced the redemption of the GAB-D 5.875% issue for 12/26/2019. With the new issue the company will have 4 issues outstanding–none of which have coupons above 5.45% and this one is not redeemable until 2021.
Outstanding issues can be seen here.
Of course being a CEF and needing to have at least 200% asset coverage ratio this will be a high quality issue.
When we could last accurately calculate the leverage GAB was at 465% (6/30/2019). Being that their assets are level 1 (directly observable prices–i.e. common stocks) investors should feel fairly secure here.
The issue will likely be unrated–they were last rated by Moodys at A1, but now they are unrated. I will need to update lists etc for this change (as well as check other Gabelli CEFs).
The preliminary prospectus can be read here.
EarlyBird and mcg were right on this new issue.
Allstate Calls ALL-A
Thanks to Zwei, who posted in the Reader Initiated Alerts page, we have now seen the official notice of redemption of the ALL-A, 5.625% perpetual preferred being called.
The issue is being called 1/15/2020 which is the next dividend payment date (Allstate preferreds can only be redeemed on a dividend payment date).
It is always amazing that even after the company signaled that they might redeem the ALL-A issue investors kept trading the shares with little caution as it had closed last week right at about $26. Yesterday it fell to $25.77. Only 2 months ago it traded around $26.70.
It is fine to own some potential call candidates, I certainly do, but giving away 1-2% or even more, at this stage is probably a bit silly–I mean ALL sold their last preferred issue with a 4.75% coupon.
WR Berkley Prices Baby Bonds
WR Berkley (WRB) has priced their new issue of subordinated debentures with a fixed rate coupon of 5.10%.
The issue is investment grade.
Maturity is way out in 2059, with an early redemption period starting in 2024.
There will be no OTC market trading, but one may be able to purchase shares (bonds) prior to exchange trading with a call to the brokerage with the CUSIP.
The company can defer interest payments for up to 5 years multiple times without it being declared in default.
Insurer WR Berkley to Sell Baby Bonds
WR Berkley (WRB) has announced an offering of baby bonds.
The bonds will have a maturity in 2059 with an early call period starting in 2024.
WRB has a number of other baby bonds outstanding–1 of which carries a 5.625% coupon and is now callable (WRB-B)--it can be seen here.
The company has not announced a call on the above issue–the ‘use of proceeds’ statement on the new issue says ‘to be used for general corporate purposes’, but I believe they will call the WRB-B issue for 1/31/2020.
Disclosure–I hold the WRB-B issue. It is trading at $25.28 –right about where it should be with accrued interest (assuming about a 30 day notice). If I am right on predicted call date it has 7 cents worth of potential ;eft.
The preliminary prospectus can be read here.
EarlyBird is the ‘early bird’ on this issue.
Monday Morning Kickoff
The S&P500 moved in a range of 3070 to 3150 before closing the week at 3146–a gain of almost 2%.
The 10 year treasury moved in a range of 1.73% to 1.86% and closed the week at 1.84%.
The Fed Balance Sheet moved higher with $13 billion added to holdings. The previous week was $22 billion higher (just released also because of the holiday). This is a 2 weeks addition of $35 billion to the balance sheet.
There were a number of new issues announced last week.
SVB Financial (SIVB) announced a new preferred stock offering. It is now trading on the OTC Grey Market and last priced at $25.16.
Customers Bancorp (CUBI) announced a new fixed rate debt issue with a coupon of 5.375%. This issue is not yet trading and the ticker is not know as of yet.
Ford Motor Company (F) announced a new baby bond with a fixed rate coupon of 6.00%. The issue is not yet trading, but some folks have been able to buy through their brokers on the bond desk.
AT&T (T) announced and priced a new perpetual preferred stock with a fixed rate coupon of 5.00%. The issue is now trading on the OTC Grey market and last priced at $24.92.
Lastly, very late Friday non traded REIT Healthcare Trust Inc. announced pricing of a new perpetual preferred at a tasty 7.375%. The issue has not traded (that we could see), but should do so today (Monday) under OTC ticker HLTCP.
