Allstate to Offer Fixed Rate Preferred Stock

Large insurer Allstate Corporation (NYSE:ALL) will be offering a new fixed rate preferred stock.

Glancing at the preliminary prospectus we see just the ordinary terms, meaning Non-cumulative (being an insurance company), optionally redeemable in 5 years with qualified dividends.

The preliminary prospectus is here.

Allstate has a total of 5 preferred offerings outstanding and the new issue MAY be used to redeem the only issue that is near a redeemable date (6/15) which is the ALL-A issue which has a coupon of 5.625%.

Given the mid level investment grade of Allstate we would expect a coupon around 5.50-5.75%.

2 thoughts on “Allstate to Offer Fixed Rate Preferred Stock”

  1. Any interest in this one, Tim?

    Seems like the perpetual aspect of it is a real negative for where we are with rates rising – is that about right? If it were a 5yr term dated offering, would that make it much more interesting?

    1. Heck, yes, GW! I would jump all over the 5 year term dated. But if it was that term it would be probably 4% with their credit rating. And since they use this for regulatory capital, we will never see a term dated issue from them. But, I have intentionally avoided these sub 6% issues. There is decent quality above 6% fo find if a perpetul is to be sought after.

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