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RiverNorth/Doubleline Strategic Opportunity Fund Issues New Term Preferred

CEF RiverNorth/Doubleline Strategic Opportunity Fund (OPP) is issuing a new series of term preferred stock.

Via a rights offering to current shareholders the company will be issuing around 419,000 Series C term preferred shares under the ticker (OPP-C). The company has applied to have shares listed on the NYSE. The shares have a $10/share liquidation preference.

The rights offering results can be found here.

The mandatory redemption date will be December 1, 2027. There will be no early redemption feature.

My assumption is the issue will be rated A1 by Moodys as the other 2 preferred issues are rated–the Moodys rating has not been updated since 12/2023.

I have seen not grey market listings yet (nor do I know if it will trade OTC)—we will have to keep an eye open for details on any public exchange trading.

OPP has 2 perpetual preferred issues outstanding with low coupons–4.375% and 4.75% which are trading in the $19 area for current yields in the 5.8% to 6% area.

CEF Highland Opportunity and Income Fund Tenders for Common Using Preferred Shares

Closed end fund Highland Opportunity and Income Fund (HFRO) has announced they are tendering for up to $100 million in common shares using a new Series B preferred issue. Details of the new preferred issue have not been announced, but they state they will be structured similarly to the Series A (HFRO-A) which is currently outstanding.

The intent of the tender offer is to try to move the common share price higher–it trades at a very steep discount to net asset value.

HFRO-A has almost always traded weakly–while A1 rated by Moodys there appears to be little confidence in the management of Highland Opportunity and Income Fund. A large share of their investments are in funds run by Nexpoint–which also is the advisor to HFRO. This company seems to have way too many incestuous relationships to be taken real seriously.

The press release from the company can be read here.

Thanks to J for posting info in comments earlier today.

New Issues From Yesterday

Yesterday, while I was out taking care of some family medical issues, there were new issues announced.

Aspen Insurance announced a new 7% non cumulative perpetual preferred with proceeds to redeem their F-to F preferred (I assume the AHL-C issue) which is now a fixed rate issue with a coupon of 9.59%. We had some snoozers on this one as it was trading at $26.60 last month and new is at $25.43. Aspen is now owned by Apollo.

The preliminary prospectus is here. The pricing term document is here.

Ramaco Resources (METC) sold a new baby bond with a coupon of 8.375%. The pricing term sheet is here.

Thanks to J (as always), Peppino and others who made note of new issues in the Readers Alert Section–always the best place to get an immediate ‘heads up’ on new issues.

Corebridge Financial Prices New Baby Bonds

Corebridge Financial Inc. has priced their new issue of Junior Subordinated Notes due 2064.

The issue prices at 6.375%. The issue low investment grade with Moodys at Baa3, S&P at BBB- and Fitch at BBB-.

This issue is a giant sized issue of 24 million shares (bonds).

Note the following from the prospectus allowing for the deferment of interest payments-

So long as no event of default with respect to the Notes has occurred and is continuing, we have the right to defer the payment of interest on the Notes for one or more consecutive Interest Periods that do not exceed five years for any single deferral period as described in “Description of the Notes—Option to Defer Interest Payments.” We may not defer interest beyond the maturity date, any earlier accelerated maturity date arising from an event of default or any other earlier redemption of the Notes. During a deferral period, interest will continue to accrue on the Notes at the interest rate described above and deferred interest on the Notes will bear additional interest at the interest rate of the Notes, compounded on each Interest Payment Date, subject to applicable law. If we have paid all deferred interest (including compounded interest thereon) on the Notes, we can again defer interest payments on the Notes as described above.

The pricing term sheet can be read here.

Corebridge Financial Announces New Baby Bond Offering

Insurance and annuity company Corebridge Financial (CRBG) has announced they will be offering a new $25 subordinated debenture with a maturity in 2064.

CRBG is a giant sized company with assets of over $382 billion as of 6/30/2024, but beyond that I am not familiar with the company

I expect the issue to be low investment grade–BBB-.

The preliminary prospectus can be found here.

Thanks as always to J for being on the lookout for new issues.