Virginia banker Atlantic Union Bankshares (AUB) has priced their previously announced non cumulative preferred.
The coupon will be a fixed rate of 6.875%.
Shares will trade today on the OTC grey market under temporary ticker AUBKL.
The shares are unrated by the big 3 ratings agencies, but are rated BBB- by Kroll Rating Service.
If this issue trades at $25 or less I may buy a position–which likely would be a ‘flip’ as I am not likely to hold a non investment grade issue at this time for long.
The pricing term sheet can be found here.
All of these small banks issuing preferred is a red flag to me. They know defaults are coming and they need to raise cash while they still can.
Agreed. These smaller banks — market caps in the $1-$3 billion range — are vulnerable. Loans to lots of smaller companies, local commercial RE, probably all facing some difficulties. The fact that they are all issuing is a red flag. The yield is therefore not enough, these should be yielding 8%.
Another issue pretty similar UCBI
This is a hot market issue. Seems everyone is seeing this as a flip so it may not be racing for the heavens.
Im not playing as a race to heaven play, Bob, but these 6 3/4 issues have been jumping out to 25.50 range pretty quickly it appears.
bought a small position at 25 on TDA
I put in a bid Grid today, see if I get it. Too many people hungry for yield. If its their only outstanding preferred, may be worth the risk,
Yes, I saw that last night on FINRA, so I jumped this morning. Maybe too quickly buying at $24.96 but the shameless IPO flip game seems alive and well again.
Gridbird which broker? I didn’t see it on Fidelity
Was able to buy at $24.98 (not as fast and efficient as Gridbird). Now seeing it on Fidelity and Vanguard
I got it on Fidelity this morning with the AUBKL ticker.
I got it on Fidelity a few minutes ago for $24.97
Hopefully you got it Jay. I had some spare change in Vanguard, TD, and ALLY and bought shares in all 3. Vanguard usually is a mental midget getting these out on time and was surprised I got shares there also so quickly.
Yes I got the trades in Vanguard, which is not as user friendly but got it in there before I could in Fidelity
Grid, I had a partial fill at 24.95 and moved it up to 25.10 and picked up another 100 so about 1/3rd of what I wanted. Letting the other 2/3rd bid float to Friday, see what happens. First quarter report was 4/28 so could be a good ride up to July 24th before the 2nd qtr. report ?
Charles, Your rope appears about as short as mine is going to be, ha.