6/23/2025
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Regions Financial (RF) has announced a redemption of their RF-B 6.375% fixed to floating preferred which was set to go to floating on 9/16–the effective date of the redemption. The issue was set to jump up to a coupon of 8.85% (more or less) once the float kicked in.
This issue was only redeemable on a dividend payment date which is 9/16 (the 15th is a Sunday)
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.
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.
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.
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.