Today we had 2 issues of preferred stock called for redemption. 1 was a mandatory call the other a fixed-to-floating rate preferred.
RiverNorth Capital and Income Fund (RSF) announced that they would redeem the 5.875% term preferred on 10/31/2024–which is their mandatory redemption date. This is one of the most misguided closed end funds that exists–going through 3 names changes and multiple investing goals over the last 7 years. I owned this term preferred since the date of issue in 2017, but had sold it in the last month or two to generate so cash to invest elsewhere. I anticipated that the fund would be selling a new term preferred to generate funds for this redemption but this far nothing has been announced. AFTER this redemption the fund will have assets of around $67 million (using 6/30/2024 financials).
Also today FTAI Aviation (FTAI) announced they would redeem their 8.25% fixed to floating rate preferred (FTAIP). Shares have just become floating with 3 month SOFR plus a fixed spread of 6.886%–no wonder they wanted to call it. FTAI was able to sell a private debt offering this week at 5.875%. The company has 3 other high coupon fixed to floating or fixed rate reset issues outstanding.