6/25/2024
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Below is the pricing detail on the new issue announced last night. The yield is juicy but the banking company has some potential issues with commercial (CRE) real estate–please do your due diligence before investing.
A complete credit analysis can be found on Morningstar at this link— FREE account is required.
Bank of Hawaii (BOH) has announced pricing on their new non cumulative perpetual preferred stock issue.
The issue is priced at 8.00% for 6.6 million shares. The early redemption date starts 8/1/2029.
The issue is rated Baa3 by Moodys (on negative credit watch) and BBB by Dun and Bradstreet.
Bank of Hawaii (BOH) has announced a new issuance of non cumulative preferred stock–price talk is in the 8.125% area.
BOH has a current preferred outstanding with a 4.375% coupon (BOH-A) which trades around $15.58 with a current yield of around 7%.
NOTE that the outstanding preferreds were downgraded by Moodys in 2023 (from Baa2 to Baa3) and just last month they were put on ‘credit watch’ (for potential downgrade) by Moodys for having a high concentration of commercial real estate loans.
The preliminary prospectus is here.
Thanks to J for the heads up and for others chiming in with additional data.
The ocean shipping sector has been a profitable sector for a number of years now, which means the the companies in this sector are mainly pretty well off financially with cash on the balance sheets.
Costamare Inc (CMRE) which has been mainly a containship owner, but more recently investing in the Dry Bulk segment announced a full redemption of their 8.75% perpetual preferred (CMRE-E) on Friday after markets closed. Holders will take about a 4% hit on their shares come Monday as accrued dividends on the issue will be about 56 cents–shares closed at $26.66. Folks paying attention should have seen this possibility and been out of this one.
Costamare (CMRE) has 3 other high yield issues outstanding all of which are redeemable at this time.
This chart was missed a week or so ago so am posting it now as requested by the reader.
Regional giant banker Citizens Financial Group (CFG) has announced they will be selling a new fixed rate perpetual preferred.
The company has 2 other issues outstanding which can be seen here. NOTE the CFG-D fixed to floating issue will be called with the proceeds of this new offering.
The preliminary prospectus can be read here.
Thanks to J for picking this one up
Below is the details on the new preferred stock issued by the SCE Trust VIII.
The trust preferreds issued by the trusts of SCE are different than most trust preferred shares—these trusts preferreds pay dividends which are both cumulative and qualified. Unlike most trusts the SCE Trust VIII owns shares of preferred shares issued by Southern California Edison—typically the Trusts (of other companys) own debentures of the forming corporation and thus the dividends of the trust preferreds are treated as interest and not dividends.
Below are the details on the new 7.50% non cumulative preferred from M&T Bank.
Southern California Edison (EIX) has announced they will be selling a new issue of trust preferred securities.
It is possible the company will be redeeming one of their outstanding trust preferred issues of which there are a number of issues.
M&T Bank (MTB) has announced they will be selling a new issue of $25/share preferred stock.
MTB has one other outstanding preferred which they inherited from the acquisition of Peoples Bank on 4/1/2022–it is a 5.625% fixed to floating perpetual.
The preliminary prospectus can be read here.
Thanks to Ken for spotting this one.