4/7/2025
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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.
Online and television retailer QVC (owned by Qurate Retail:QRTEA) has priced the previously announced baby bond.
The issue will carry a coupon of 6.25% on 17.4 million shares (plus 2.6 million over allotment shares).
The issue is low investment grade per S&P and Fitch, but speculative per Moodys.
Being investment grade one would have expected a lower coupon, so this means that holders of the QVCD issue (the currently outstanding 6.375% baby bond), which carries a yield to worst around 5.5% would be a bit better off buying the new issue once it trades (sometime in the next week), assuming it trades in the $25 area.
There will be no OTC Grey market trading in this issue, but if one desires an early purchase a call to your broker might allow you to purchase before permanent market trading.
Triple net lease REIT Global Net Lease (GNL) has announced the sale of a new cumulative, fixed rate, perpetual preferred stock. Of course being a REIT preferred the dividends will be non qualified.
The issue will have an early redemption period in 2024.
The preliminary prospectus can be found here.
The company has 1 other preferred issue outstanding which has a 7.25% coupon (GNL-A) which trades fairly strongly and is at $26.35.
Thanks to Fabrib for being on this one right away this morning.
Retailer QVC (owned by Qurate Retail:QRTEA) has announced a new offering of $25/share baby bonds.
The Senior Secured Notes will have a maturity date way out in 2068.
The notes will trade under the ticker QVCC when they begin to trade.
The company has a 6.375% baby bond already outstanding (QVCD) which can be seen here. While we don’t see a new rating today the QVCD notes are low investment grade (BBB-) per S&P and a below investment grade per Moodys Ba2
The preliminary prospectus can be read here.
Ptrader and If you Prefer were on this on instantly.
Morgan Stanley has priced their previously announced new fixed rate preferred.
The issue is non-cumulative, qualified, NON investment grade and 20 million shares priced at 4.875%.
With all the substandard coupons we have seen I should be used to being disappointed in these meager coupons–but I’m not!! If it was investment grade–then maybe 4.875% would be right–but they fall short of investment grade.
Oh well–it is what it is and my simple answer is –NO I won’t buy any.
The pricing term sheet is here.
Thanks SteveA for being on top of this one.