Category: Preferred Stock

Insurer/annuity company American Equity Investment Life (AEL) has priced the previously announced preferred issue.

The fixed-rate reset preferred will carry an initial 5.95% coupon until 12/1/2024. At this point it will reset to the 5 year treasury plus a spread of 4.322%. On each 5 year anniversary it will reset again.

The issue is rated BB (just below investment grade) by both S&P and Fitch.

This is the companies 1st preferred, but they can be compared to Athene (ATH) a very similar company. The Athene issues can be seen here.

The pricing term sheet can be found here.

Jerry had the spread on this one pegged a couple hours ago.

Update–link to FDIC site. Go to this page and search bancorpsouth (all one word).

Tupelo, Mississippi based banker BancorpSouth (BXS) has announced the issuance of a new preferred stock issue.

This issue is non-cumulative, qualified and has a 5.5% coupon.

The issue is rated Ba1 (junk) by Moodys. Note–junk doesn’t necessarily mean it is a bad issue.

The issue will trade OTC Grey market immediately under ticker BCSBP. The permanent ticker will be BXS-A when it moves to the permanent exchange.

The announcement can be found in this press release.

Details such as 1st call date, dividend payment dates etc have not yet been filed. The bank is regulated by the FDIC and filings follow a different process than with the SEC.

Thanks to mcg and Gary for being on this issue.

Compass Diversified Holdings (CODI) has priced the previously announced preferred.

The issue was priced at 7.875%, with 4 million shares being sold, with another 600,000 being available for over allotments. This issue will issue a K-1 at tax time.

I had originally thought this issue might be interesting, with a possibility that I might want a small position. But upon further review of the currently outstanding CODI preferreds I see no reason to rush into any purchase–CODI issues trade weakly.

The issue will trade immediately on the OTC Grey market under temporary ticker CMPSP.

The final pricing term sheet can be read here.

Diversified manufacturing company Compass Diversified Holdings (CODI) has announced a new fixed rate preferred unit issue that will have a ticker of CODI-C when it begins to trade on the NYSE.

CODI is a limited partnership and thus any distributions are non qualified and the investor will receive a K-1 at tax time. Distributions will be cumulative.

The company has 2 other issues outstanding which can be seen here. These 2 issues have traded rather weakly.

The preliminary prospectus on the new issue can be seen here.

Thanks to If you Prefer and George for being on this one.

American Equity Investment Life Holding Company (AEL) has announced a new $25 preferred issue.

This is another Fixed-Rate Reset issue, which means it will have an initial fixed rate until 12/1/2024 at which time the company can optionally redeem the issue–or reset the coupon based upon the 5 year treasury plus a “spread”.

There after as long as the issue is outstanding the coupon will be reset every 5 years at the 5 year treasury plus the “spread).

The issue will be non-cumulative, but should be qualifed. The permanent ticker will be AEL-A once trading begins on the NYSE.

The issue will trade on the OTC Grey market, but the temporary ticker has not been announced yet.

The preliminary prospectus can be read here.

Insurance rating agency AM Best had previously rated the company and you can read a previous press release here.

I find no credit ratings from Moodys, Fitch or S&P.

I am not familiar with the company–but could have an interest. When I don’t recognize a company I do extra deep digging to avoid surprising ‘history’.

As usual mcg was right on top of this announcement with SteveA tracking down some ratings.