Innovative Income Investor | Innovative Income Investor

New Issues From Yesterday

Yesterday, while I was out taking care of some family medical issues, there were new issues announced.

Aspen Insurance announced a new 7% non cumulative perpetual preferred with proceeds to redeem their F-to F preferred (I assume the AHL-C issue) which is now a fixed rate issue with a coupon of 9.59%. We had some snoozers on this one as it was trading at $26.60 last month and new is at $25.43. Aspen is now owned by Apollo.

The preliminary prospectus is here. The pricing term document is here.

Ramaco Resources (METC) sold a new baby bond with a coupon of 8.375%. The pricing term sheet is here.

Thanks to J (as always), Peppino and others who made note of new issues in the Readers Alert Section–always the best place to get an immediate ‘heads up’ on new issues.

Headlines of Interest for Owners of Preferred Stock and/or Baby Bonds

Below are press releases from companys with preferred stock and/or baby bonds outstanding–or just news of general interest.

Season is pretty much over so we will have slow news days for a month or two.

Stifel Reports October 2024 Operating Data

SL Green Realty Corp. Announces Proposed Offering of Common Stock

Abacus Life Announces Proposed Public Offering of Common Stock

Hovnanian Enterprises Announces Fiscal Year 2024 Earnings Release and Conference Call

Mortgage Rates Tick Up

CoBank to Offer Series M Preferred Stock

Star Equity Holdings, Inc. Declares Cash Dividend of $0.25 Per Share of 10% Series A Cumulative Perpetual Preferred Stock

Allstate Announces October 2024 Catastrophe Losses

Terreno Realty Corporation Announces Development Completion in Hialeah, FL

Eagle Point Institutional Income Fund Generates 9.9% Annual Net Return and Exceeds $150 Million in Assets

Headlines of Interest for Owners of Preferred Stock and/or Baby Bonds

Below are press releases from companys with preferred stock and/or baby bonds outstanding–or just news of general interest.

Earnings Season is pretty much over so we will have slow news days for a month or two.

Dynagas LNG Partners LP Announces Date for the Release of the Third Quarter 2024 Results

SL Green Extends Loan on 1515 Broadway

LuxUrban Hotels Inc. Reports Third Quarter 2024 Financial Results

NCV, NCZ Announce Reverse Stock Splits and Monthly Distributions

MicroStrategy Announces Pricing of Offering of 0% Convertible Senior Notes

Great Ajax Establishes Effective Date of Previously Announced Rebrand to Rithm Property Trust

Turnaround Tuesday and Wednesday

It is interesting to watch markets–equities in particular. Since I seldom am a buyer of common stocks anymore it is not necessarily consequential where things move hour to hour, but as someone who has watched and studied these things for 53 years I still find it fascinating.

Yesterday started pretty soft then reversed and sprinted higher the rest of the day–today the S&P500 was off almost 1% and now has reversed and it down just .3%. The mood of traders is what is interesting–or is it ‘machines? Drive things in one direction and then drive them in the other direction. All this movement and yet the index is just 1.7% off of an all time high–quite interesting.

Surveying my holdings today it is becoming obvious that when I ‘lightened up’ on perpetuals last month it was a mistake–a mistake in that I didn’t just dump my perpetuals instead of ‘lightening up’. While the portfolio is still just a few 1/10%’s off all time highs it is always discouraging to see dividends and interest payments roll in while share prices move lower offsetting the nice payments. Just noise–all just noise. Watching the low coupon (or mid coupon) issues there are bargains being made–but that assumes interest rates stabilize or come down and I am very leery of that happening.

I am watching the term preferreds and baby bonds with maturities in the next few years–the only place I would be likely to do some buying–but not today.

Well as I type this the S&P500 has taken a fairly large dump–guess no one can decide what the future holds (really?).

Corebridge Financial Prices New Baby Bonds

Corebridge Financial Inc. has priced their new issue of Junior Subordinated Notes due 2064.

The issue prices at 6.375%. The issue low investment grade with Moodys at Baa3, S&P at BBB- and Fitch at BBB-.

This issue is a giant sized issue of 24 million shares (bonds).

Note the following from the prospectus allowing for the deferment of interest payments-

So long as no event of default with respect to the Notes has occurred and is continuing, we have the right to defer the payment of interest on the Notes for one or more consecutive Interest Periods that do not exceed five years for any single deferral period as described in “Description of the Notes—Option to Defer Interest Payments.” We may not defer interest beyond the maturity date, any earlier accelerated maturity date arising from an event of default or any other earlier redemption of the Notes. During a deferral period, interest will continue to accrue on the Notes at the interest rate described above and deferred interest on the Notes will bear additional interest at the interest rate of the Notes, compounded on each Interest Payment Date, subject to applicable law. If we have paid all deferred interest (including compounded interest thereon) on the Notes, we can again defer interest payments on the Notes as described above.

The pricing term sheet can be read here.