New Issue | Innovative Income Investor

mREIT PennyMac Mortgage Investment Trust Prices Baby Bonds

Mortgage REIT PennyMac Investment Trust (PMT) has priced a new issue of senior notes.

The issue prices at 9% for 4 million shares (bonds) which have a maturity date of 6/15/2030.

PMT has 2 other senior note issues with coupons of 8.50% and 9% respectively show below-

The pricing term sheet can be found here.

UMB Financial Prices New Fixed Rate Reset Preferred

Banker UMB Financial (UMBF) has announced pricing of their new fixed rate reset preferred issue.

The issue prices with an initial coupon of 7.75% which will be reset on 7/1/2030 at the 5 year treasury rate plus a fixed spread of 3.743%.

It is highly likely that a portion of the proceeds will be used to redeem the UMBFP 7% fixed to floating issue which goes floating starting 7/15/2025–this issue was originally issued by Heartland Financial which merged with UMB Financial.

The pricing term sheet is here.

UMB Financial Announces a New Fixed to Floating Preferred Issue

Banker UMB Financial (UMBF) has filed to sell a new fixed-to-floating rate preferred stock issue.

Of course it is non cumulative and pays the normal quarterly dividend.

The company has a fixed to floating preferred issue (UMBFP) outstanding which is redeemable on 7/15/2025–this issue has a giant sized spread of 6.675% (to be added to 3 month SOFR) and the banker no doubt wants to get rid of this potential 10-11% coupon so I would expect a call for 7/15/2025–here is their ‘use of proceeds’ statement–

We expect to receive net proceeds from this offering, after deducting underwriting discounts and estimated offering expenses payable by us, of approximately $ (or approximately $ if the underwriters exercise in full their option to purchase additional depositary shares). We expect to use the net proceeds from the sale of the depositary shares for general corporate purposes, which may include the redemption of all outstanding shares of the Series A Preferred Stock and the repurchase, redemption, or retirement of a portion of the 2030 Notes.

The preliminary prospectus can be read here.

Thanks to 2whiteroses for catching this one and to jerrymac for chiming in yield talk in the 7.875% area.

KKR Prices Baby Bonds

Asset manager KKR & Co has priced their previously announced baby bonds.

The issue prices at 6.875% and have a maturity date of 6/1/2065.

This is an investment grade issue from S&P and Fitch, although the company has the right to defer interest payments for 5 consecutive years without a default being declared.