Aspen Insurance Holdings to Sell Preferred

Aspen Insurance Holdings (NYSE:AHL) has announced a new non-cumulative preferred share offering.

The issue is perpetual and will have an optional redemption date starting in 2024.

The issue will trade under the permanent ticker of AHL-E once trading begins on the NYSE. We await the OTC temporary ticker as it will trade on the Grey market first.

We expect these shares will be low investment grade.

The company has 2 current outstanding preferred issues which can be seen here.

The preliminary prospectus can be read here.

11 thoughts on “Aspen Insurance Holdings to Sell Preferred”

  1. Offshore insurance company owned by private equity. I am going to overlook the rating agencies and say neeeh. I’ll just keep the junk I already got. Be fun to see where it trades though, people sure were ginned up a couple weeks ago.

  2. Could have bought AHL-D yesterday in the $25.20 area. Unless you can get this early and under par, don’t see teh great allure here.

  3. Just took a cursory 10 minute tour on Aspen. My info here may be wrong, but do your own DD:
    No common so no common div. coverage of prefs. All common bot by Apollo in Feb. for 2.6? billion. Where’s the cash? Have run losses recent quarters, one division has over 100% ratio. I know insurance books run separate from corporate books and insurance losses are somewhat usual.
    Seems hard to get full story, besides AHL-D looks just about as good and has a longer call coverage. Doesn’t seem to be a hurry to own and may not get the hopeful quick bump in price premium for trading out like so many issues lately.
    Seems they are working through a lot over the last few years, unclear relationship to APO. Tell me what you know/find. TD showing 162k shares trades, no indication, no order palcements yet.
    Need a bigger view. JA

    1. I know AHL is not the only company in this situation. But is anyone else a little nervous to own a non-cumulative preferred where the common owners don’t need a dividend? Commons shareholders of utilities, banks, insurance companies, REITs, mREITs all expect dividends on their common, and will pound management into submission if they don’t get their dividend. But Apollo doesn’t need the cash flow, and could be quite content letting cash and profits accumulate in the subsidiary for many quarters. So the issuer is essentially paying dividends out of the goodness of its heart? I understand that their other preferred securities have consistently paid dividends, and they would lose credibility in the market if they ever stopped. But with most other companies, management is probably thinking they will lose their jobs if they don’t pay a dividend on the common.
      Should I be thinking about it differently?

  4. Tim, could you make a sticky post defining the various credit ratings? For those of us who don’t have such things memorized, it would be very helpful as a reference.

Leave a Reply

Your email address will not be published. Required fields are marked *