Allstate Corporation Prices New Preferred — UPDATE

UPDATE–the OTC Grey market ticker is ASTLZ

Allstate Corporation (ALL) has priced their previously announced new preferred stock offering.

As we expected (and mcg had pegged at 1:37 pm central) the coupon is plenty low at 4.75%–oh well it is what it is.

Of course the issue is investment grade, noncumulative and qualified and will trade on the OTC Grey market right away — unfortunately the temporary ticker has not been announced. The permanent ticker will be ALL-A when it begins to trade on the NYSE.

The company may redeem ALL-A with the proceeds of this offering (and I believe WILL redeem). All-A is a 5.625% issue which became callable on 6/15/2018.

The pricing term sheet can be found here.

21 thoughts on “Allstate Corporation Prices New Preferred — UPDATE”

  1. I see this symbol (ASTLZ) is trading on Yahoo Finance @ 24.89, but when I go to Fidelity this all that comes up: “ASTLZ is an unknown symbol. Please try again, or click Find Symbol for help.”

    1. Call Fidelity trading desk. When I called about a previous IPO they didn’t list yet, they were able to buy it by entering the CUSIP in place of the symbol, or so he said. They won’t charge you broker assisted commission if you can’t do it yourself.

  2. Was able to contact Schwab and have them place an order at no charge. Took an overweight position as 24.85 and will watch closely.

  3. All of the recently issued sub-par preferreds are dropping like stones. TRTOF is 24.84, JPGGL is 24.85, PSB-Z is 24.74 and even NTREL is now 25.05. Best to think twice before buying ALL out of the gate.

    1. Vg, thanks. I got burned badly. You are absolutely correct. I sold my TOO-E, seeing that TOO or Brookfield Private Equity failed to declare dividend just a few days late and am now bidding for the PSPBZ at Schwab.com (known as PSBPRZ at Fidelity.com), PS Business Parks, 4.875% Dep Shares Cumulative Preferred Stock, Series Z at $24.67. Just changed to $24.68 with half of million shares sold today, 12:50 pm New York time.

      Ticker Symbol: PSPBZ CUSIP: 69360J552
      Yep, the market seems to have turned on low yield SWAN on a dime. I have followed the new Vanguard long CA Muni bond mutual fund along with intermediate CA Muni bond mutual funds., along with some silly Franklin Templeton ETF generic Muni Bonds. For the past 10 days or so, it goes down every other day, mostly, with the 10 Yr US Treasury climbing. I sold all my Vanguard CA muni bond fund yesterday. I took a stab just $2K position or so at AMD (the chip maker, going up everyday with its genius CEO from MIT but left IBM. Schwab and Morningnstar both believe that this is the worst stock. Then I know that MStar analysts were WRONG on at least 3 stocks. AMD has a chip 1 generation ahead 6G of INTC (Intel) while INTC is still working on the 5G. I just changed the bid to $

      1. johnkcal, the only news I found was Teekay Offshore Partners is merging with Brookfied Business Partners. I don’t know if that is good or bad. TOO-B has a current yield of 9% and TOO-E is 9.5%. That’s attractive but I have a large gain so I might sell anyway. Thanks for bringing it to my attention.

        1. danzeb, I went against my instinct coming from my legacy Amtrust preferreds becoming delisted but still getting paid by Michael Karfunkel’s stupid son-in-law Zyskind, sold my small IRA positons of TOO-E. I just saw the announcements on SA one day after I sold.
          https://seekingalpha.com/pr/17686253-teekay-offshore-partners-declares-distributions-series-b-e-preferred-units?ifp=0
          https://seekingalpha.com/pr/17685853-teekay-offshore-partners-announces-third-quarter-2019-earnings-results-conference-call?ifp=0

          Looks like Brookfield, one of the two giant private equity firms seem like to continue with the two orphan units. To me, preferred units could be worse than preferred stocks. I was expecting Brookfield offer us some deal to buy back somewhat below the par value, at least as generous as the TOO common units. Looks like Brookfield could be more generous. The question on whether one should buy back largely depends on the Earnings Call Transcript IF there is some analysts Q and A. On related Renewables, Brookfield’s own, BEP seem to have staying power, probably from stock buy backs by B. Perhaps for TeraFarm, 60% owned by B. PEGI, wind has been sold to Canadian utility company after a very nice climb, on rumors that Brookfield may want to acquire PEGI and its parent Development company.

          1. danzb, according to Fidelity.com, the ex div date for TOO-E is tomorrow. Hence, I sold my PEGI, which has been sold to a Canadian pension and placed a limit order to buy back 250 shares (actually 30 shares more than what I sold) from Fidelity.com IRA account to avoid Schedule K1. Unlike many who claimed that Limited Partnership income would be construed as return of capital. This is untrue as I have finally given up with two incompetent CPA/Enrolled agent plus another Enrolled agent and going back to do my own tax with my daughter’s help. Guaranteed Income in K-1 almost always result in tax rate equivalent to ordinary income. Few exception, like EVA, which cleverly declared expense as deductible offset some of the guaranteed income. So far. only 100 shares of TOO-E was filled. Schwab recognizes the symbol ASTLZ, but considered it as mutual fund. No big hurry, only one half of million shares have been sold. Learned my mistakes on bidding too high just recently.

      1. It seems Schwab is not ready. Move money to Fidelity and placed an order of 480 shares @24.84. Last trade 400 and then again 4600 shares @ 24.86. This is is actually better than JPGGL which I kept on bidding above par plus another one at par. There is some increase in price for JPGGL and TRIOF (actually now above par). Schwab.com seems to confirm the Dividend date for TOO-E. Bought back TOO-E 250 shares. If not taken private, TOO-E would be a great buy. Then I probably will not push my luck too far.

  4. Colgate just priced a Euro bond at 0.000%. What’s worse, it only pays interest annually. Right out of the prospectus.

    4.75% ain’t bad in comparison.

    1. If anyone wants to lend me money at 0.000%, I’ll pay interest monthly. But I would also ask for notice and a 5 day grace period in the event of default.

    2. bob-in-de—I saw some earlier that were paying only annually–kind of a joke-a bad joke.

      I read an article yesterday where some European countries now have negitive rate mortgages–they pay you to borrow.

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