6/5/2025
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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.
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.
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.
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.
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.