9/19/2024
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AT&T (T) has priced their previously announced perpetual preferred stock.
The coupon is fixed at 5.0% for 48 million shares.
The issue is split investment grade with only Standard and Poor rating the issue investment grade.
The dividends are cumulative and qualified.
The issue will trade on the OTC Grey Market right away.
Tomorrow we will have the monthly employment report released.
I see that after a bit of a soft report in October with a 128,000 new job numbers the consensus for November is 180,000 new jobs.
ADP released a 67,000 non farm number for November on Wednesday–that is a damned sight lower than 180,000.
So we all know that these numbers are many times in conflict–and in the end, irrespective of what you believe, the marketplace takes the government report as the ‘official’ employment report, typically ignoring ADP.
One thing is almost certain–if ADP is correct we will likely see a sharp move lower in stocks and a 5-10 basis point move lower in the 10 year treasury–recession talk would be back on the table.
Of course my predictions are worth less than a cup of coffee–BUT just in case I am buckling up at 7:25 a.m. tomorrow.
Non-publicly traded healthcare REIT Healthcare Trust Inc. (not to be confused with Healthcare Trust of America which is ticker HTA) has filed to sell a new issue of preferred stock.
The official preliminary prospectus has NOT been filed yet with the SEC, but the company press release can be found here.
Additionally the company has a new presentation filed with the SEC and it indicates a potential coupon of 7.375% on this new issue. The presentation can be found here.
I like the look of the coupon, but being non traded I am skeptical–more due diligence will be required before I have an interest.
EarlyBird got the worm again on this one posting it to the Reader Initiated Alerts page about an hour ago.
Giant Telecom AT&T (T) has announced the issuance of a new perpetual preferred stock.
This will be the 1st perpetual preferred issue for the company as far as I can find. They do have some global notes outstanding which can be seen here. Additionally there are 2 3rd party issues outstanding (KTBA and GYC) which we do not cover at this time.
The issue will have an early redemption date starting in 2024. Other terms appear to be fairly typical for a perpetual preferred—cumulative and qualified with quarterly payments.
The preliminary prospectus can be read here.
Thanks to EarlyBird for being the early bird on this one.
Ford Motor Company (F) has priced the previously announced note issue with a maturity date in 2059.
The permanent ticker has not been announced, but we will have it when known. There is no OTC Grey Market trading, but one may be able to secure shares (bonds) prior to exchange trading by calling your broker with the CUSIP.
The company has 1 other baby bond issue outstanding which can be seen here. This issue carries a 6.20% coupon.
Customers Bancorp Inc (CUBI) has priced their previously announced subordinated notes.
The notes are priced at 5.375% for 2.6 million shares (bonds) with another 390,000 for overallotments.
The issue is rated BBB- by Kroll Bond Rating. They define this as medium quality.
No ticker has been announced so one will have to keep their eyes open for it if you have an interest. We will post it when known.
The early call feature is not available to the company until 2029–10 years instead of the more typical 5 years.
CUBI has numerous preferreds outstanding which can be seen here.
Gary Hargreaves posted a short article on the Sandbox page relative to CLO exposure by a few companies that I follow to some degree so I am just posting the link for others that may have missed Gary’s post. The article is 6 weeks old, but still may be of interest.
The article is short and not detailed for the most part, but it does highlight some history and touches on Oxford Square (OXLQ), Prospect Capital (PSEC) and Saratoga Investment (SAR).
The bottom line is be cautious with what you own–dig a little deeper to find out who owns equity ‘tranches’ of CLOs (the riskiest tranches)–don’t chase the juicy yield some of the common shares pay, without understanding some of the risks.
Vehicle manufacturer Ford Motor (F) will be selling a note offering with a maturity date out in 2059.
The company offered notes earlier in the years (May) so this will be their second offering this year. The previous note (which can be seen here) carries a 6.20% coupon.
The preliminary prospectus for the new issue can be seen here.
There will be no official OTC Grey market trading on the issue, but one may be able to purchase before exchange trading by contacting their broker once the CUSIP is announced.
earlybird was right on this one on the Reader Initiated Alerts page.
Customers Bancorp (CUBI) will be selling a small issue of $25 subordinated notes with a due date in 2034. Details are not known but I believe the issuance will be 1-1.5 million shares (bonds).
Of course CUBI has numerous issues of preferred stock outstanding and they have always seemed to be favorites with investors.
Their preferreds outstanding can be found here. All 4 issues outstandings are fixed-to-floating rate issues.
Note that within the preliminary prospectus for the new notes the company states they ‘may redeem shares of our preferred stock once they become redeemable’. The next issue available for redemption is the CUBI-C 7% issue which is redeemable in June, 2020.
The Baby Bond page is the 4th most accessed page on the website–and honestly, the crappiest in performance.
Historically speaking, many of us that have watched these things for a long while, know that just getting a reliable source for baby bond quotes is near impossible–and further getting them to load in a timely fashion is a royal pain in the ass (to be blunt).
For 14 years I have fought this problem and I finally believe I have it solved (maybe famous last words before it breaks again).
Anyway the page had an average load time of 10.8 seconds–really. Who the hell waits around for 10.8 seconds for the page to load? I can tell you 69% of the folks accessing this page don’t wait–what frustration.
As I have ‘clocked’ the page it is now loading in around 2 seconds which is about as fast as any page.
If a few readers could access the page here and let me know in the comments below if the page is fairly fast–or still painfully slow I would appreciate it. Sometimes what I see is not always the same as what you might see and feedback would be helpful.
Thanks for your help.