4/16/2025
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Untraded healthcare REIT Healthcare Trust Inc. priced their previously announced perpetual preferred late Friday.
The issue priced at a fixed rate coupon of 7.375% and is cumulative, but non qualified. This is a rather small issue so it will be interesting to see how much demand there is for a high yield issue, since we have seen so many low coupon issues recently.
The issue should trade today (Monday) on the OTC Grey Market under ticker HLTCP.
In spite of my own skepticism with the various organizations (government and others) releasing jobs numbers it is hard to be negative on job growth.
266,000 jobs simply blew all predictions out of the water, and the last couple of months were revised upward.
Compared to the ADP report of +67,000 jobs in November the government number is simply crazy. Whether either employment report is correct is up for debate I suppose, but I learned long ago that guesses by forecasters are worth absolutely nothing. One thing is almost for sure–there is no recession in the near future.
The equity market are up about 1/2% on the news while the 10 year treasury is up about 6 basis points to 1.855%.
Contrary to previous employment reports we can’t say “this brings the Fed back in play”—at least if we take them at their word without inflation they will not hike rates–and certainly the employment report is not supportive of cutting rates.
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.