Category: Preferred Stock Call

Public Storage (PSA) has called for the redemption of the 5.40% perpetual preferred effective on 1/20/2021 at the normal $25 plus accrued dividends.

The company press release is here.

The issue was trading at $25.76 last Friday so there will be small losses on the call for some–the issue goes ex dividend today for about 34 cents and there will be a small stub payment on redemption.

The Gabelli Healthcare and Wellness Trust (GRX) has announced they will be calling the only preferred they have outstanding.

The 5.875% GRX-B shares will be redeemed on 12/24/2020 for $25 plus 35.9 cents of dividends accrued.

The various Gabelli funds have been redeeming issues by selling shares in the trust–versus doing a ‘re-fi’ with a new preferred. Essentially they are selling shares at high prices–shrinking the size of the trust and reducing leverage–seems like a smart move.

The shares which had traded as high as $27 or so in October are now trading at $25.33–falling about 55 cents from yesterdays close.

The press release can be read here.

Green-n-Gold was on top of the press release earlier today.

Wells Fargo (WFC) has announced the redemption of the series T and V issues of $25 preferreds stock. Both carry 6% coupons.

The series T had previously had a partial call on 2/12/2020 of 26.7 million shares leaving 5.28 million shares outstanding.

The series V issue was 36 million shares with 4 million over allotment shares.

The calls are effective 12/15/20 (a normal dividend payment date).

The SEC filing with the call is here.

A4i was on this one earlier.

Markets are dangerous for snoozers and dreamers.

Data center owner Digital Realty (DLR) has called their 5.875% perpetual preferred today–effective 10/15/2020.

The issue went ex-dividend yesterday for around 37 cents.

The issue has been redeemable since 4/2018, but yet was trading near $26 a day or two before ex–it went ex for 37 cents but bounced right back up toward $25.90. The company dropped the call this morning and shares are now trading at $25.06.

It is interesting that DLR is selling Euro Note debt at 1%–hint–don’t be fiddling with investment grade preferreds past call dates.

Of course we all mostly know this, but I post it as one more example of what a newer investor should not do.

As Eugene noted in the Reader Initiated Alerts my old friend WR Berkley (WRB) is finally stepping up and doing a partial call on the WRB-B 5.625% Jr Subordinated Debentures which have been callable since 5/2018.

Shares tumbled the last 3 days from the $25.80 area to $25.39 now–obviously someone had this info early.

The company will fund the partial redemption with further issuance of 4% Senior Notes.

The info is in the prospectus here.

I have owned this issue many times over the years–but not lately.