4/26/2024
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Finally the detail on the new American Financial Group (AFG) has been released.
The issue should trade in the next week or so. You will have to check your broker website to see when it trades–or if you are impatient you can place a phone call to your broker with the CUSIP noted in the grid below.
Insurer American Financial Group (AFG) has priced their new issue of subordinated notes. The SEC documents have not yet been filed so I will post further detail tomorrow morning.
The coupon will be 5.625%. The ticker will be AFGD. Standards and Poor’s rates the issue BBB- and Moody’s Baa2—both investment grade. They are selling 6 million shares.
Being debt this will not trade on the OTC grey market. Once the cusip is known investors can call their brokerage if they want it before exchange trading.
This issue has the potential for trading quite strongly – at least looking at the 5.875% issue that is currently outstanding and trading between $26 and $27 would seem to indicate potential to trade in the $25.50 to $26 area. I may have an interest at a fair price once exchange trading begins.
The company press release on this new issue can be read here.
Insurer American Financial Group (AFG) will be selling a new issue of subordinated debentures.
The company currently has 3 other issues outstanding which can be seen here.
The company will have the right to defer interest payments for up to 5 consecutive years with a default occurring.
The new debentures should be rated low investment grade.
The new issue will trade under ticker AFGD when they hit the exchange in the next week or so.
The issue will not trade on the OTC grey market, but investors may be able to call their broker and buy early via the CUSIP (not yet known).
The preliminary prospectus can be found here.
Thanks to mcg for the instant heads up.
Banker First Horizon National Corporation (FHN) has announced the pricing of their new preferred stock.
The coupon will be 6.50%. The issue is non-cumulative and is rated BB- by Fitch and Ba2 by Moodys–not investment grade.
The permanent ticker will be FHN-E when it finally trades on the NYSE.
As of this moment the OTC grey market ticker has not been announced.
Tennessee banker First Horizon National Corporation (FHN) will be selling a new issue of Non-Cumulative preferred stock.
The new issue will be rated BB- by Standard and Poors and Ba2 by Moodys—both non investment grade.
The company has one other preferred issue outstanding which can be seen here.
The preliminary prospectus can be found here.
mcg was on this one early as usual.
Truist Financial (TFC) has priced the previously announced non-cumulative preferred stock.
The issue will carry a fixed rate coupon of 5.25%. The issue is a large one of 20 million shares with another 3 million available for over allotment. The shares will have an optional redemption period starting 6/1/2025.
The issue is investment grade.
Shares will trade immediately under OTC grey market temporary ticker TFCLL.
You know it is happening–I know it is happening–the question is to what level phony mortgages are being written in the commercial mortgage market?
We all have our own thoughts and opinions on subjects like this, but to truly get to the bottom of it you would need to work 24 hours a days for months on just this one topic. Since none of us have this type of time we depend on others to do the legwork.
Here is an article–I can’t vouch for how accurate it is, but typically where there is smoke there is fire–is it a backyard bonfire, or a ranging wild fire?
Yesterday I made a purchase of a 1/2 position in the South Jersey Industries 5.625% Junior Subordinated notes (SJIJ).
While the issue is a notch under investment grade it appears that the risk/reward was about right for the price I paid–$24.80–a current yield of around 5.70%. These shares had traded solidly in the $26.50 area prior to the pandemic.
As I have mentioned I am pretty loaded up with utility issues–mainly electric utility baby bonds and with closed end funds (CEF) preferreds–most bought at bargain prices last month so have been mostly lying in the weeds in the last couple of weeks around 70% and watching for reasonable buys.
I am quite convinced we will see lower prices in many preferreds and baby bonds–but when? In the meantime I really want to get back on the dividend train so will get some decent quality issues here and there to get the dividends and interest rolling.
South Jersey Industries is the natural gas supplier for a portion of New Jersey and recently reported solid earnings for Q1 ending 3/31/2020. More importantly they affirmed their forecast for the balance of the year–very solid numbers (of course who can totally forecast in this environment).
The shares go ex dividend on 5/29/2020.
Truist Financial (TFC), which is the new name of the company composed of BB&T and SunTrust Bank which previously merged, is offering a new preferred issue.
The issue will be non-cumulative and investment grade and will have the relatively typical terms.
The company has a number of other issues outstanding which can be seen here.
The preliminary prospectus can be read here.
Thanks to mcg and EarlyBird for ferreting this out earlier today.
Insurance company Brighthouse Financial (BHF) has priced their new issue of non-cumulative preferred stock.
The issue is split investment grade (investment grade per S&P, but not per Fitch or Moody’s).
The issue will trade today on the OTC grey market under temporary ticker BHFBL.
The pricing term sheet can be found here.