6/28/2025
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Insurance company American Financial Group (AFG) has announced a new issuance of baby bonds.
The company has a number of issues already outstanding–3 baby bond issues to be exact.
The company intends to redeem the 6.25% baby bonds due in 2054 (AFGE), which have been redeemable since 9/30/2019.
The new issue will likely be investment grade (BBB- from S&P and Baa2 from Moodys) so the coupon will be fairly low. The permanent ticker will be AFGC when it begins to trade on the NYSE in a week or two.
Multi strategy REIT Ready Capital (RC) will reopen (sell more shares in a currently outstanding issue) their 6.20% baby bonds (RCB).
This issue was originally sold in July, 2019 and was most recently trading in the $25.59 area.
Disclousre–I own this issue and may take this opportunity to add a little more.
The selling price of the new issue has not been announced yet.
FINALLY the OTC Grey market ticker has been posted. It is GBLNP–of course now you have to wait on your broker to update their systems.
Diversified triple net lease REIT Global Net Lease (GNL) has priced their new preferred.
The issue comes with a coupon of 6.875% and it will be cumulative, but non qualified.
This is unrated–they will sell 3 million shares plus 450,000 more for over allotments.
The issue WILL trade on the OTC Grey market–likely tomorrow, but the temporary ticker has not been announced–likely one of the folks will post it here in the morning the minute it is announced.
I may/may not have a personal interest in the issue–probably only if it trades at $24.75 or at least below $25–then our interest might only be for a flip.
Insurance company/asset manager AXA Equitable (EQH) has posted the pricing on the new preferred stock previously announced.
The issue has priced with a fixed rate coupon of 5.25%–slightly better than what I thought it might price.
The issue is non cumulative and qualified and is a fairly large issue with 29 million shares with 4.35 million more for an over allotment.
The shares will trade on the OTC Grey market immediately under ticker AXQEL.
The pricing term sheet can be found here.
Thank you Jerry for having the correct coupon hours ago.
Insurance/asset manager AXA Equitable Holdings (EQH) has announced a new issue of non-cumulative, fixed rate, perpetual preferred stock.
No doubt this will be another low coupon issue–readers are guessing 4.75% to 5%.
The issue will be lower investment grade–S&P has the rating at BBB-.
This will be the 1st preferred for AXA (at least for many years).
The preliminary prospectus can be found here.
mcg had this one on the Reader Initiated Alert page a couple hours ago.