Category: Debt Issuance

UPDATE–as noted in the comments below the SEC Filing is now in. This is a very typical issue, with a early call date in 2025 and a maturity in 2080.

The preliminary prospectus can be read here.

Giant utility Southern Company (SO) will be selling a issue of $25 baby bonds.

No firm details are available (SEC filing is not in yet),

EarlyBird had some preliminary details very today showing a potential 5.125% coupon with an investment grade rating. If you Prefer posted “5% area” so it should come in the 5.0% to 5.125% area–I would be surprised if it were higher.

SO has 3 subordinated notes outstanding now and Georgia Power (a division of SO) has 1 issue outstanding.

You can see the outstanding issues on the “Baby Bond” page–and decide how a 5.00-5.125% issue would stack up.

WR Berkley (WRB) has priced their new issue of subordinated debentures with a fixed rate coupon of 5.10%.

The issue is investment grade.

Maturity is way out in 2059, with an early redemption period starting in 2024.

There will be no OTC market trading, but one may be able to purchase shares (bonds) prior to exchange trading with a call to the brokerage with the CUSIP.

The company can defer interest payments for up to 5 years multiple times without it being declared in default.

The pricing term sheet can be seen here.

WR Berkley (WRB) has announced an offering of baby bonds.

The bonds will have a maturity in 2059 with an early call period starting in 2024.

WRB has a number of other baby bonds outstanding–1 of which carries a 5.625% coupon and is now callable (WRB-B)--it can be seen here.

The company has not announced a call on the above issue–the ‘use of proceeds’ statement on the new issue says ‘to be used for general corporate purposes’, but I believe they will call the WRB-B issue for 1/31/2020.

Disclosure–I hold the WRB-B issue. It is trading at $25.28 –right about where it should be with accrued interest (assuming about a 30 day notice). If I am right on predicted call date it has 7 cents worth of potential ;eft.

The preliminary prospectus can be read here.

EarlyBird is the ‘early bird’ on this issue.

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.

The pricing term sheet can be read here.

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.

The pricing term sheet can be read here.