Allstate Prices Preferred and OTC Grey Market Trading Begins

Large insurer Allstate (NYSE:ALL) priced their new preferred stock at 5.625% which is pretty much were we thought it would come in.

Of course the issue is non cumulative and perpetual and as such we have no personal interest in it at this time, although purely on a safety basis it is a decent issue.

The company has 5 other issues outstanding and they trade strongly between $25.59 and $26.33 with coupons of 5.62.5% to 6.75%.

The pricing term sheet can be found here.

The OTC Grey market ticker is ALLSP and likely is trading, but the ticker is not showing up yet on eTrade.

5 thoughts on “Allstate Prices Preferred and OTC Grey Market Trading Begins”

  1. Even though the coupon is not that great, if it trades around par on the OTC Grey it might be worth buying with an anticipated run-up to $25.50 or so.
    Any thoughts on WSR? REITs have been hammered lately but WSR is at the bottom of the pile. One or two SA writers are predicting a div cut it seems. You going to hang on or what? thanks! Leonard

    1. One more question – you said you are keeping AFHBL on a short leash; you running out of slack yet? I’m holding too but don’t like the chart for AFH and AFHBL looks pretty dicey. thanks!

      1. I think this one will be ok. They had to file for an extension on their 10K which allowed them to have a new deadline of 4/2–next Monday. Hopefully the ugliness is built in so I will be holding to see the earnings call–we know it is bad as they have preannounced–let’s hope the future is much rosier. Hope I’m not wrong on this one.

    2. Hi Leonard–I feel good about Whitestone as a company–I feel less good about the potential price. They have announced they want to reduce leverage and the only way they can do that is through a stock offering (or reducing the payout would help some, but not all that much). I think it is probably time to let it go and will do so this week yet.

    3. Forgot–on Allstate I was thinking the same thing–just a 50 cent flip might work well.

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