Category: Preferred Stock Call

Texas bank Cullen Frost (CFR) slipped in a full call of their 5.375% perpetual preferred late Friday (2/14).

Once again folks were caught as the shares traded last at $26.16—with this price the 3/15/2020 redemption means a loss of around 83 cents/share for holders.

mREIT Dynex Capital (DX) announced a surprise partial call of their 7.625% DX-B shares of preferred stock late today.

DX which just sold a new issue of 6.90% perpetual preferred (4 million shares plus 600,000 for over allotment) had announced with the sale of this new issue they were calling for redemption their 8.50% DX-A issue for 3/14/20. There was no mention of a partial redemption of the 7.625% DX-B issue.

Lo and Behold late today commenter Ralph happened upon a press release stating the intention of the company to redeem 1.7 million shares of the DX-B issue on 3/16/2020.

The press release can be read here.

The DX-B issue closed Fridays trading at $25.55. This partial call should now peg the remaining shares closer to $25 plus accrued dividends for the future.

Late today CLO holder Eagle Point Credit Company (ECC) announced the full redemption of the Series A 7.75% Term Preferred (ECCA) issue.

This should really come as no surprise as the company had redeemed 900,000 shares back in May.

The issue closed today at $25.95. With the redemption date being 1/31/2020 holders will receive 2 dividends yet (it is a monthly payer) of around 16 cents (32 cents in total). So holders today will see a capital loss of around 63 cents.

Thanks to Affinity4Investing for being right on top of this call notice.