Innovative Income Investor | Innovative Income Investor

Insurer American Financial Group to Sell New Baby Bond

Insurer American Financial Group (AFG) will be selling a new issue of subordinated debentures.

The company currently has 3 other issues outstanding which can be seen here.

The company will have the right to defer interest payments for up to 5 consecutive years with a default occurring.

The new debentures should be rated low investment grade.

The new issue will trade under ticker AFGD when they hit the exchange in the next week or so.

The issue will not trade on the OTC grey market, but investors may be able to call their broker and buy early via the CUSIP (not yet known).

The preliminary prospectus can be found here.

Thanks to mcg for the instant heads up.

First Horizon National Prices Preferred Issue

Banker First Horizon National Corporation (FHN) has announced the pricing of their new preferred stock.

The coupon will be 6.50%. The issue is non-cumulative and is rated BB- by Fitch and Ba2 by Moodys–not investment grade.

The permanent ticker will be FHN-E when it finally trades on the NYSE.

As of this moment the OTC grey market ticker has not been announced.

The pricing term sheet can be read here.

First Horizon National to Sell New Preferred

Tennessee banker First Horizon National Corporation (FHN) will be selling a new issue of Non-Cumulative preferred stock.

The new issue will be rated BB- by Standard and Poors and Ba2 by Moodys—both non investment grade.

The company has one other preferred issue outstanding which can be seen here.

The preliminary prospectus can be found here.

mcg was on this one early as usual.

Banker Truist Financial Prices Fixed Rate Preferred

Truist Financial (TFC) has priced the previously announced non-cumulative preferred stock.

The issue will carry a fixed rate coupon of 5.25%. The issue is a large one of 20 million shares with another 3 million available for over allotment. The shares will have an optional redemption period starting 6/1/2025.

The issue is investment grade.

Shares will trade immediately under OTC grey market temporary ticker TFCLL.

The pricing term sheet can be seen here.

Shenanigans in the Commercial Mortgage Patch?

You know it is happening–I know it is happening–the question is to what level phony mortgages are being written in the commercial mortgage market?

We all have our own thoughts and opinions on subjects like this, but to truly get to the bottom of it you would need to work 24 hours a days for months on just this one topic. Since none of us have this type of time we depend on others to do the legwork.

Here is an article–I can’t vouch for how accurate it is, but typically where there is smoke there is fire–is it a backyard bonfire, or a ranging wild fire?

Check out this article if you haven’t see n it already.