Athene Holding has priced their new fixed-rate reset preferred stock issue.
The issue prices at an initial coupon of 7.75% which remains until 12/30/2027 at which point the coupon will reset at 3.962% plus the 5 year treasury rate. There after the issue resets every 5 years.
The issue is investment grade.
The issue will trade immediately on the OTC grey market under ticker ATHLV.
The pricing term sheet is here.
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Does anyone have a view on the creditworthiness of the AAM versus the ATH preferreds, or other characteristics of how they compare? At least the issues that I’m looking at, ATH seems to yield quite a bit more and I’m not sure why.
Well, this is concerning. I see ATHLL in my Fidelity account, but when I try to place a sell order, it says it is NOT in my account.
Fidelity does let me place a buy.
Nothing concerning at all. With the multiple OTC changing tickers and “when issued” status, sometimes that is how these new issues work
Wait a day or two and everything will be fine
Now trading as ATHLL at Fidelity.
Bought a small position in ATHLV on 12/6 from Fidelity, now nothing showing up in current position for ATHLV or ATHLL and no history of trade. I’ll wait and see if time cures this as I’d prefer not to call and be placed on hold.
So now we have Apollo doing another preferred, thru Athene. All outstanding issues from AHL, ATH, AAM… Need to be re evaluated. I think there are 9.
Anything with a 5.625 or lower may want to move.
Yes what is the parent company ticker symbol?
Athene’s parent is Apollo Global Management, Inc. (APO)
https://www.apollo.com/stockholders/
If You prefer – I think this is #10–here is the list before this new issue.
https://innovativeincomeinvestor.com/securities/?parent-ticker=apo
I’ve been a buyer this morning. Am I correct in thinking this issue will NOT issue a K-1?
It’s a traditional preferred, no K 1
Seems to be trading in narrow band $25.15-$25.28 if I have correct quotes.
eTrade does not allow to place a trade. Bought a small quantity at Fidelity.
Share @Chuk P concern about why a supposedly IG preferred needs to offer 7.75% to attract buyers. Given that it is trading so close to $25, it seems to be priced right…
7.75% FOR A BBB RATED COMPANY???? PLEASE TELL ME WHATS WRONG WITH THIS PICTURE???? PLUS A GREAT RESET RATE AS WELL.
I suspect that the terms are fat because the preferred stock is subject to “abuse” from Apollo, like threats to delist?
Article on MSN mentions Apollo Global and Pacific Investment have $4B in unsecured loans to Carvana
https://www.msn.com/en-us/money/markets/carvana-stock-tumbles-43-books-worst-day-on-record-as-bankruptcy-fears-rev-up/ar-AA151jOA
Carvana one step from bk
Apollo trying to renegotiate, recover their money
Chuck, none of the other preferred Tim has listed for APO are trading at par. Sounds like APO coming back to the money well to load up.
Maybe wait til the dust settles. Looks similar to what happened with AGNCL
Quick Question:
Is the quoted credit rating (SAP BBB) of the company or the security? My understanding is that preferred securities are a couple of notches lower than the company, which would make this one below investment grade?
Thx
Hi Gumfighter–the rating is for the individual preferred stock. The rating shown is the anticipated rate. Below is the rating for a current outstanding issue from S&P which is BBB.
US$300 mil 5.625% non-cum perpetual ser B
Foreign Currency LT
BBB
Regulatory Disclosures
18-May-2021
26-Aug-2022
EE|UKE