Preferred Stock Call | Innovative Income Investor

Big Time Ouch from Popular

In what has to be one of the largest knocks preferred investors have taken on a call in recent memory Popular Inc. (BPOP) has announced the redemption of their 6.70% Trust preferred issue (BPOPN). The call is for 11/1/2021.

Shares had traded just shy of $29/share yesterday and are now trading at $25.22.

Thanks to Fred for being on this early with Ken chiming in with this press release.

Investors need to be careful with the various Puerto Rican bank issues as these company’s have improved their financials greatly in the last 10 years and it is likely any high coupons are going to be called.

More Official Redemption Notices

As noted a couple days ago a call was expected on the National Retail Properties 5.2% perpetual preferred. Ken posted the press release on the call here. The call occurs on 10/16/2021.

Ken also posted the press release on the call of the Southern Company SOJB issue. The issue is a 5.25% junior subordinated note due 10/2076. The call is for October 18th. The press release is here.

A non official call is reflected below–

J posted that The Hartford Financial Services Group (HIG) has pre-announced a redemption on their 7.875% fixed to floating rate debentures (HGH) which is not redeemable until 4/15/2022. Shares are at $26.36 right now. With 3 interest payments of 49 cents each at this price it is about a breakeven. Will be curious to see who forgets about this pre announcement and keeps the price in the mid $26’s until March. The ‘use of proceeds’ statement is here.

Huntington Bancshares Comes a Calling

Huntington Bancshares (HBAN) has announced the redemption of the HBANN 5.875% perpetual preferred issue. This issue originally was a First Merit issue which was acquired by HBAN. The redemption is for 10/15/2021.

Markets are sleeping–the issue is trading at $25.87—50 cents above value (redemption is at $25.37).

The press release is here.

J was on top of this and posted in the Reader Alerts section

Priority Income Fund Tee’s Up Series K and Calls Series E

Serial term preferred stock issuer Priority Income Fund (Not publicly traded) has teed up the series K term preferred issue.

Additionally they have announced a redemption of the 6.375% Series E issue (PRIF-E).

The preliminary prospectus can be found here for the new issue.

The announcement of the conditional (conditioned on selling of securities) redemption is here. The redemption is estimated to occur sometime between 10/8/2021 and 11/5/2021. NOTE–I believe there is a mistake in their filing as they reference the series A issue which has already been redeemed.

A4I mentioned the new series K this morning.

Cincinnati Bell Calls $50 Convertible Preferred

In connection with the just completed acquisition of Cincinnati Bell (CBB) by Macquarie the $50 convertible preferred shares of CBB have been called for redemption on 9/22/2021.

This lowly preferred (rated CCC/Caa1) was issued way back in 1999. Over the years I have owned this one, but not recently.

The company press release is here.

This information was posted in the Reader Alerts page by A4I and HankLA.