4/24/2024
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Virginia banker Atlantic Union Bankshares (AUB) has priced their previously announced non cumulative preferred.
The coupon will be a fixed rate of 6.875%.
Shares will trade today on the OTC grey market under temporary ticker AUBKL.
The shares are unrated by the big 3 ratings agencies, but are rated BBB- by Kroll Rating Service.
If this issue trades at $25 or less I may buy a position–which likely would be a ‘flip’ as I am not likely to hold a non investment grade issue at this time for long.
Atlantic Union Bankshares (AUB) has announced an offering of non-cumulative preferred shares. They currently have no other exchange listed preferreds outstanding.
The shares will trade under ticker AUBAP on NASDAQ after a short stint on the OTC grey market (temporary ticker not yet announced).
An optional early redemption period will become available to the bank starting in 2025–on any dividend payment date.
I am not finding any rating on this new issue from the 3 major rating agencies at this time.
The preliminary prospectus can be read here.
Thanks to mcg for being on top of this new issue.
Most all the folks that frequent this website know that when you are buying and selling preferred stocks and baby bonds it is absolutely NECESSARY to use ‘limit orders’.
One of my largest holdings is the Affiliated Managers Convertible ($50 issue) which took a pop of over $4/share today on 208 shares as a buyer was snoozing. This makes my account look good, but obviously is a great way to pee away $4/share–over 1,000 shares have now changed hands back down at around $42.
In particular when buying and selling these somewhat ‘illiquid’ shares one has to make sure to use those limit order.
The S&P500 traded in a range of 2969 to 3068 before closing on Friday at 3044 which is around 3% higher than the previous Friday–party on.
The 10 year treasury moved in a range of .648% to .72% before closing at the low of .648%.
The Fed Balance Sheet moved higher by $58 billion which is only about 1/2 of the week before when we saw it grow by $103 billion.
The average $25/share preferred and baby bond moved almost 2% higher last week with shipping moving 3% higher, mREIT preferreds moving 2% higher. Lodging REITs were the biggest movers higher with a gain of around 20% (not on this chart). As quality issues (CEF, banks etc) slow in gains investors are rotating to low quality issues which have been laggards.
Last week we again had 3 new income issues ($25 issues) come to market.
Scorpio Tankers (STNG) announced a small issue of 7% senior notes. I don’t find this trading yet but would expect it to trade this week.
Southern Banker Hancock Whitney (HWC) sold a new issue of subordinated notes. I don’t find this trading yet but would expect it to trade this week.
Lastly Tennessee banker Pinnacle Financial (PNFP) sold a 6.75% non cumulative preferred. Shares are trading on the OTC Grey market under ticker PNFPB and last traded at $25.60.
Disclosure–I did buy some shares of the Pinnacle offering–likely to hold until a 1-2% gain is realized.
