Allstate Corporation (ALL) has priced their new noncumulative preferred stock.
The issue prices at 7.375% for 24 million shares. The issue is noncumulative, but qualified.
As expected the issue is investment grade at BBB from S&P and Baa2 from Moodys
The issue will trade OTC grey market today under ticker ALLJV (at least to start)
The pricing term sheet can be read here.
Well I tried to buy today and my system blocked me. Was able to yesterday, no go today. And then it spiked 75 cents of course.
I got some fills at around 25.32 this Wednesday morning on it with IBKR. It seems to require a minimum 100 share order else it says ‘odd lots not supported’. The trade says the exchange is MM, and it’s odd as even placing the order at the ask takes a good 10-15 seconds to actually fill.
Ally Invest now allows buys if you call in and do some voodoo dancing and speak the correct incantations to wake the royal supervisor. Once the order was placed I smote my shares at a higher price then the day before. Just a nibble to force them to get their butts moving to get the proper ticker symbol into their system down the road.
Bought a bunch at Merrill Edge ticker ALLPL at 25.27
Correction ALLJL ticker
Correction ALLJL ticker
Looks like it is trading at Schwab with ALLJL
Well.. I would have expected this to be off the grey by now. Kind of ridiculous it now takes so long to transition. I understand starting on the grey with a temp ticker but now with the updated ticker I would have thought it would be on the pink at least. No point in calling the broker until it updates.
Every new issue is unique it’s its trading inception. We’ve seen some issues play games for 30-60 days. I think Ford was one of them. Its not unusual for it to be purchasable on one platform but not another.
fc, I called the broker yesterday and placed a bid at 25.25 it did cost me for using the broker but knowing the games they play I just did it for a couple 100. I was watching after the symbol changed from V to L pre-market and able to see the trades, it was trading as low as 24.95 then all the way up to 25.34 before opening.
I was also able to place my own bid 10 cents lower in the same account GTC
Lets see how the rest of the week goes.
I will not be surprised I am too early to the party. I don’t think ALL would be doing this if it did’t need the money like LNC & JXN next quarterly report could be a surprise. As a few have mentioned here you need to look at insurers on an annual basis but then LNC was a surprise wasn’t it? Even now with the cash infusion the last conference call management said the rest of 2023 is going to be tough.
There may be better opportunities later this yr to buy ALLJL when it gets its permanent ticker ( or not) it’s all sort of a gamble but its better than a 5 hr drive to Reno and the expense of a 2 day junket.
CM, I hear you and am sharing your sentiment re the rest of 2023. It’s an odd time. The overhang of the so-called “expert market” has cast a spell on me and I’m retreating to the older snooze-button holds. Current example – cannot even explain the “why” of it to myself though am passing on this new ALL issue. I guess for starters I did not understand the pricing being so rich which for me triggered the pause button.
As for Reno…I always liekd this one: Guy goes into a casino carrying two suitcases, one full of cash, one empty…makes one bet.
Yes Alpha, I have been placing “bets” in the illiquids trying for about 6% return at least I know they will still be around after all this is over. Also still waiting for Utes to fall back to some of the lows they hit last Oct. Nov.
Picked up SR-A then at 22.30 may be waiting a long time!
CM I hope you got a fistfull of SR-A at 22.30 – that was a terrific entry! Like you indicated on waiting, oh man sometimes it’s endless but when those big sell-offs hit, patience pays big dividends. Recently been picking up a few here and there when sell side swamps the bid even for 20 minutes, though especially now with readily available SPAXX or equivalents, we can afford to wait. Been harboring this inexplicable sense there’s another shoe waiting to be dropped.
I put in a couple bids spread out by .10 under ask on T Rowe this morning.
I was told the big boys had a spread of 25.25 bid / 25.32 ask see if my limit orders hit.
I also put in a low ball bid on a couple of the older preferred in case they crash
I hope you get some fills. I can see large blocks trading at around $25.25 in time&sales.
You can see the actual trades going off, on some systems, and the B/A on these things are just indications. There was no formal posting of that. Yesterday it did stay pretty tight but I’m pretty sure if you tries to buy GTC day at 25.22 it would have filled.
Why would anyone buy the ALL-H or I that pay a much lower rate when they can get the new issue at 7.375% ? I’d be interested if H or I dropped to give a similar yield
AJ, the key is to get a bit lower. But in the right interest rate environment the others will have more room to run , while the new issue will be anchored nearer to par because of future YTC issues. Take your pick! Just depends which angle you want to play.
I’m getting this warning from Fidelity. I haven’t seen this before for gray market issues. “(TC9051) Opening transactions for Grey Market are not permitted because of the risks associated with these securities and all Microcap securities.”
i got the same message when i tried to put in an order
I am getting the same message from FIDO while TD does not allow trading in this security yet.
I guess the days of flipping new issues are over, at least at Fidelity?
When I put in the CUSIP on Interactive Brokers, it comes up as OTC Grey market ALLJL. I can see in time&sales that there’s large blocks of like 400,000 trading. Although like some other brokers IBKR says ‘trading in OTC grey market stocks is not supported.’
I got the same message. Too much Big Brother.
On Fido, the temp ticker is now ALLJL.
Anything interesting in the Use of Proceeds section of the prospectus like redeeming ALL-B?
Nevermind. See someone covered this in the other post.
They could be like an MREIT and turn around and cut it the next qtr, 🙂
Is there any concern over Allstate’s profits? It seems like their net profit has really dumped and gone negative in the last couple quarters.
Thats the life of an insurer…Here is a quote from management less than 2 weeks ago….
Allstate’s capital of $19.2 billion exceeds our target capital based on this framework. Our ratings remain strong, with S&P and Moody’s assigning an issuer credit rating of A minus and A3, respectively, to our recent senior debt offering. Holding company assets of $4.2 billion as of the end of the first quarter represent approximately 2.5x our annual fixed charges. We returned $377 million to shareholders in the quarter through dividends and share repurchases. As a sign of our financial strength and commitment to shareholder returns, the common dividend was increased by 4.7% in the first quarter and paid in early April.
Grid, I expect the beatings to continue, umm I mean the dumping of the older shares of ALL preferred. After yesterday’s dump older money as you pointed out will want to preserve what capitol they have that was gathering 5 to 6% return and move it over to the newer issue paying above 7%
Hope they dump ALL-B. Happy to pick up a few more at the right price…
I wouldnt mind it myself. Its present price isnt too bad, still largely 8% allowing for accrued. It appears unfortunately the market already figured out J has nothing to do with B though.
Reactions in a major way to a large insurer over the period of a few quarters or a year is usually unwarranted–in particular in light of the turmoil in the bond markets.