Farmer Mac (Federal Agricultural Mortgage-AGM) announced after the market close today that they were calling for redemption their 6% fixed to floating (AGM-C) perpetual preferred shares–the effective date is 7/18/2024. The issue was moving to floating on that date.
Category: Preferred Stock Call
Costamare Makes a ‘Call’
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.
Citigroup Calls a Preferred
As noted by Dick Whitman a few minutes ago in Reader Alerts Citigroup has announced a full redemption of perpetual preferred C-J. This is a fixed to floating issue that has been floating since 9/23.
The banker had previously called a portion of this issue on 12/29/2023.
For Those That Missed It
Late Friday utility NiSource announced a call of their 6.50% perpetual fixed-rate reset preferred (NI-B) for 3/15/2024, which is the first date it is callable.
NI-B is one of my larger holdings so am sad to see it go, but it is not a big surprise. I may sell before 3/15/2024 or may just hold through the call – we are talking pennies differences.
Insurer American International (AIG) Calls Preferred Shares
Tonight AIG announced a redemption of their series A preferred shares (AIG-A).
Shares are 1st redeemable on 3/15 and that is the date of redemption. Redemption is $25/share plus accrued dividends.
Energy Transfer Makes a Huge ‘Call’
Energy giant Energy Transfer (ET) has announced a huge preferred stock redemption this morning.
They will be calling the ET-C, ET-D and ED-E issues of preferred stock with proceeds from debt issuance. All these are fixed to floating issues. E will not be redeemable until May, but the C and D issues are currently callable.
All total they will be calling over 60 million shares. Currently the C and D issues are floating and have coupons around 10%.
Thanks to mbg for the ‘heads up’ on this one.
2 Preferreds of Note – 1 Call, 1 Dead (or close)
As noted by J very early this morning Citigroup (C) has called their 6.875% fixed to floating preferred (C-K) issue for redemption on 11/15/2023 which is the 1st date it became redeemable.
Additionally Ontrak (OTRK) has received a delisting notice for their 9.5% perpetual preferred (OTRKP) for trading under $1/share–it is now at 36 cents.
Plymouth REIT to Redeem Preferred Shares
In what has been a fairly rare event of late Plymouth REIT has announced they are redeeming their 7.50% perpetual preferred PLYM-A. The issue is trading around $25 plus accrued so no windfall will be had by investors.
Eagle Point Makes ‘Calls’ for Redemption
Eagle Point Credit (ECC) has made a call of numerous issues of ‘term prefeerreds’ and notes.
The company which just sold a note issue with a 5.375% coupon (ECCZ) made a full or partial call on 3 different issues.
They have made a full call on the 7.75% term preferred (ECCB) for 2/28/2022, a full call on the 6.75% notes due 2027 (ECCY) for 2/14/2022, and a 50% call on the 6.6875% notes due 2028 (ECCX) for 2/14/2022.
All issues are called at $25 plus accrued dividends or interest. The SEC notice is here.
Many issues of ECC remain outstanding–although obviously not at such lucrative coupons.
mbg and others posted this call on Friday.
Gabelli Utility Trust 5.625% Preferred Has Snoozers
The 5.625% Gabelli Utility Trust (GUT-A) has been called for 1/31/2022 and holders are snoozing.
As pointed out by Justin in comments the issue is trading at $26.61 and it will have 13 cents worth of accrued dividend so redemption at $25.13