Athene Holding LTD Pricing Detail

Below is the pricing detail for the new Athene Holding LTD (ATH) fixed rate reset preferred.

Until 9/30/2025 the coupon is fixed at 6.375%.

The coupon will reset every 5 years starting 9/30/2025 and will reset at the 5 year treasury plus a spread of 5.97%–a pretty decent spread on an investment grade issue. This spread becomes the floor rate for the future coupon.

This issue is redeemable starting 6/30/2025 for a period of 90 days (until 9/30/2025). Then is only redeemable for a 90 day period in a coupon reset year (every 5 years) from 6/30 until 9/30.

The pricing term sheet can be read here.

28 thoughts on “Athene Holding LTD Pricing Detail”

  1. It appears Athene is offering this generous coupon due to the 1 billion loss on the income statement? appears their investments have taken a hit. I will pass. Already have money in Partnerre for many years.

  2. I am playing this as a flip. I like the rate structure but I am not big on the Bermuda reinsurance business. The balance sheet and income statement may say IG but the inherent riskiness of the business tells me the ratings are overstated.

    Hoping for 26 so I can get out and wait for other opportunities.

    1. You too Bob? Every time I see “Bermuda” I take a step back and those pesky questions re-surface. …What are the accounting conventions, who is auditing those books, how many Lamboghinis are parked in front of the corporate office, why Bermuda

  3. After having my CPA take a look at the company I did end up buying 2,000 shares of it. Huge volume trading in it. 7,838,000 shares traded today.

    1. Closed at 25.40….IMO it’ll break 26 in short order. If Pinnacle can close at 26 ATH can too. As I’ve been saying the A’s and B’s had a good track record prior to March.

  4. I picked up some shares off Vanguard for $25.30 a couple of hours ago. They did not hit me for the $50 surcharge. Because the web page said it was OTC I had to enter a limit order, bu it hit pretty quick as I had it a penny or two below the bid price. Will see what it does now.

  5. The mechanics of this issue (not addressing the company itself) is really remarkable from a reset issuance. Historically speaking HQ preferreds have had a 200-400 bps spread between yield and 10 year. Now granted one is dropping to the shorter duration tethered 5 yr here but a 5.97% spread seems more than adequate compensation.
    There is a very nice interest rate protection here. I wish it was a utility issue on these terms. Still I had to round up the cash to participate in this and buy a modest base position despite my general non rational emotional disdain for offshore insurers.

    1. They already had two high yielding good valued preferreds that we’re not callable and going exdiv next week, so they had to make this a good one. I am not so happy as i hold ATH-B and it dropped a lot yesterday but i will hold and collect the dividend until it recovers.

    2. RE: Spread on ATH-C.

      Agree, it’s quite notable. In the last couple months there have been several issues that have come to market as resets with out sized spreads. Most, I recall, were $1000 issues. You have RF with a 542 bp spread

      https://www.sec.gov/Archives/edgar/data/1281761/000119312520158649/d830402dfwp.htm

      And Schwab at a 497 bp spread

      https://www.sec.gov/Archives/edgar/data/316709/000119312520121135/d896533dfwp.htm

      For me, there is a place in my portfolio for resets with large spreads issued off a index that is near historic lows. Rates may go lower, and these issues may reset down as a result, but in the context of a risk diversified portfolio I like them.

      Keep ’em coming!

  6. This from Quantum Online:

    “The issuer has the option to redeem all, but not less than all, of this security outside of the call period upon sending the sending of notice to the common shareholders of a proposal for an amalgamation or any proposal for another matter that requires an affirmative vote of the holders of the preferred shares at a redemption price of $26.00 (104%) per depository share (see the prospectus for further information).”

    I’ve not seen this language before. Seems it might cap the preferred at $26. I’ve scanned the prospectus, but cannot find the relevant passage.

  7. Does not seem like much meat left on the bone for a flip

    ATH-A which has essentially the same fixed rate until 2029 is trading at 25.41. Given ATTHL is out of the gate at 25.30, I think the upside is limited. I will pass

      1. That may be but if you are betting on this issue rising just because of the general market rising, there are a whole lot better bets to play

  8. Being quoted at $25.29 but Fidelity was trying to charge $50 for doing a “foreign trade” and Vanguard just “dropped” the order without saying why and I am guessing it somehow sees this as a foreign instrument
    Anyone seeing anything otherwise?

    1. I just bought some via Fidelity. No $50 Charge. You can enter the buy order
      yourself. Use the ATHHL symbol.

      1. Be careful with Fidelity. I bought some more of this issue. The second time
        they did charge me $50. I’m pretty pi–ed off.

    2. Fidelity is pissy on everything. Bermuda is a tax treaty friendly place- no problems there.
      My Schwab trade entry area has no ‘warning’, no fees. Prob won’t be buying.

  9. To Tim and All; Is there anyone out there that is really familiar with this company??? My CPA says he has a life policy with them and that they are a good company. Well I’ve heard that expression before. I would love to know what Tim and others really think of it as like I said yesterday “on the surface” it looks kinda GOOD. As far as this issue they have the ATH+A which I think looks just as good mainly because you have call protection until 6/30.29. Both coupons are pretty close to each other.

    1. GM Chuck…I have a family member with an annuity through Athene, and all my interactions with them on her behalf have been quite good. Insurance is not really an area of expertise, so “no comment” on the quality of their other products.

  10. I’m confused (again). Redeemable for only a 90 day period by who? The issuer, the holder or both? This site is an education for me.

    1. Some more knowledgeable will chime in. In general this 1 is callable in 2025 at the issuers demand. In other words Once you hit that date you are subject to getting the issue cashed in at 25 plus accrued interest.So if you hold it at 26 you might loss a dollar if the next day the announce 25 call

    2. ok, that was a dumb question. Only the issuer can redeem. The holder (us) can only sell. So I guess the 90 day restriction refers to the issuer.

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