6/20/2025
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Banker Wintrust Financial (WTFC) has priced their recently announced fixed rate reset preferred offering.
The issue will trade with a coupon of 7.875% for just over 5 years–until July 2030 and then will ‘reset’ at the 5 year treasury rate plus a fixed spread of 3.878%. Resets will be every 5 years thereafter.
As noted by many people in the comments today the preferred shares of Compass Diversified (CODI) are down dramatically this morning.
Last night I posted in ‘headlines‘ a press release from CODI which was for investors to not rely on recent financials. The article is here.
Almost without exception these types of things always send shares lower—most of the time they recover–but maybe they do and maybe they don’t–as always uncertainty kills.
The CODI preferreds can be seen here–all are off $6-7/share this morning.
Maybe these are a bargain? I personally never buy into these situations–but that is just me–maybe others can pick up shares cheap.
Today I received an optional ‘put’ notice for my Gabelli Global Utilities 5.20% Puttable Preferred ($50/share)–I always wondered the exact mechanics of one of these transactions because after all these years I had never owned a puttable issue.
Obviously I am not tendering–I bought these just a week or so ago to hold for at least 18 months.
Below is the notice I received from eTrade.
Issuer name: GABELLI GLOBL UT & INC TR SE B
CUSIP: 36242L303
Cutoff Date: 2025-06-25
The Issuer is proposing a(n) TENDER.
OPTION1: CA- USD
Holders that tender will have their positions removed from the account in exchange for cash at the liquidation preference of $50.00 per Preferred Share plus any accumulated and unpaid dividends.
If you wish to participate, navigate to etrade.com > Portfolios > Shareholder Actions or visit: etrade.com/voluntaryelection
Came across this item this morning–interesting. This 5.50% non cumulative preferred (CADE-A) is an exchange traded issue and to see a special paid to preferred holders is pretty unusual.
Untraded closed end fund (CEF) Priority Income Fund has called their 6% PRIF-H for redemption on April 9, 2025–the mandatory redemption on this one was scheduled in 12/2026.
This is the 2nd term preferred that PRIF has redeemed early in the last 4 months. They redeemed the PRIF-G 6.25% issue in December, 2024. It had a mandatory redemption in 6/2026.
It is quite obvious that PRIF is making these calls based on the mandatory redemption dates–not by coupon. These are generally smaller issues–a million shares or so – not a big hardship on a CEF with total assets of over 900 million to call. I believe the next issue they will redeem is the 6.625% PRIF-F issue–this is the issue with the next mandatory redemption which is 6/30/2027. This issue is currently callable and trading at $24.38. I will immediately try to buy some of this issue since our H shares are being called.
Disclosure–we own shares of the PRIF-H 6% issue in 2 accounts.