Athene Holding to Sell Fixed-to-Floating Preferred

Annuity company Athene Holdings (NYSE:ATH) will be selling a new fixed-to-floating rate preferred issue.

The issue will be non-cumulative being a insurance company, but dividends should be qualified.

This is a investment grade issue and is rated BBB- by Standard and Poors.

Further details of the issue are not available at this time.

The preliminary prospectus can be found here.

The company has no other preferred issues outstanding at this time.

14 thoughts on “Athene Holding to Sell Fixed-to-Floating Preferred”

    1. Hate to see that “F” on the end of the symbol. Bermuda/UK based insurance company with a retail annuity operation in the US.

    2. This comment is not a reflection on Athene Holdings per se but just an observation regarding some f to f issues where there is no dividend on the company’s common stock and the preferred is not cumulative.

      So the issue begins to float and let’s assume we’re in a rising rate environment. What prevents the the company from simply not declaring preferred dividends in order to cut expenses, thereby propping up the common stock price at the expense of preferred shareholders?

      I like f to f issues. I’m not so sure for non cumulative issues without a healthy common stock dividend.

      What am I missing ?

      1. Thanks you saved me time researching this. Adding in other research like it’s a Bermuda firm makes this a pass for me.

        I don’t think you are missing anything

      2. Along the same lines, Retired, how meaningful can this statement be from the prospectus??? “So long as any Series A Preference Shares remain outstanding, unless dividends on all outstanding Series A Preference Shares payable on a dividend payment date have been declared and paid or provided for in full; no dividend shall be paid or declared on our common shares or any other junior shares or any parity shares, other than a dividend payable solely in our common shares, other junior securities or (solely in the case of parity shares) other parity shares, as applicable, during the following dividend period;…” If the preferred shares are non-cumulative, then what’s the point? This statement would only apply if they DECLARED a divvy then didn’t pay on the payment date? And where’s the teeth in the statement if they’re not paying dividends on the common now anyway? On the other hand, in your rising rate environment assumption, of course, if Athene remained solid at the time, the optional redemption available them on the date of the float would save them.

        BTW, apologies for making so many posts recently, but being housebound for the next few months, I’ve got way too much time on my hands…. lol

      1. It’s just not my cup of tee at the moment in this market. The issues I raised with regards to it being a foreign issue, non cumulative f to f with no support from a common dividend bother me a little bit so I’ll pass. In addition the company has only been around for 10 years and yet the issue doesn’t float until 2029 so it has that going for it. It may be a perfectly fine issue but not in my comfort zone.

      2. Without DD on my part, Investment Grade by SP, annuity company, seems to me mispriced with 6.35% non cumulative but QDI, should be as good as it gets. I do need to take at look at 10-Q and 10K. Thanks Tim and very one.

        1. Extremely difficult to do any DD. SEC filings suggest a whole bunch of subsidiaries and some related company in the US. It appears that they have significant activities in Iowa. I give up. Could be like Amtrust in the beginning …

          1. I cancelled my order. Bought TSCBP instead. TSCBP has come down earth just a little. Probably paid $50 too much for 600+ shares. You can get it $25.71.

    1. They announced last night they are going to use proceeds from a common stock offering to call KMPA.

      1. As I thought.
        I sold my MFO long ago and missed several juicy coupon to avoid this kind of risk, but no call yet. Weird.

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