Insurer Assurant Inc. (AIZ) has priced their previously announced subordinated notes.
The issue was priced at 5.25%. The issue is rated Ba1 by Moody’s and BB+ by Standard and Poor’s–both 1 notch lower than investment grade.
The issue will pay quarterly interest payments, but the company will have the right to defer interest payments for up to 5 years, on 1 or more occasions although not past the maturity date which is 1/15/2061. If deferred interest will continue to accrue.
The typical optional redemption can occur beginning 1/15/2026 for $25/share plus accrued interest.
There will be no OTC grey market trading on the issue, but those with a desire to buy notes before exchange trading occurs can call their broker with the CUSIP. It is likely the issue will begin to trade on the NYSE within a week or 10 days.
The pricing term sheet can be read here.
It’s a great company with a strong track record for shareholders.
$25.87 last price. Seems nuts to me.
Trading today. Last price $24.90. As per Tim, you need to call your broker to place a trade using the CUSIP.
https://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=FAIZ5080246&symbol=AIZ5080246
$25.87 last price. Seems nuts to me.
They announced a div hike on their common. guess they are borrowing with this to pay the hike. I will pass.
I don’t know the company well, but they will earn about $8.90 this year and the dividend is $2.64, so it doesn’t appear that they are issuing this to pay common dividend.