Just last week the AllianzGI Convertible & Income Fund II (NASDAQ:NCZ) sold an issue of perpetual preferred stock–this week we have the sister (or is it brother) AllianzGI Convertible & Income Fund (NASDAQ:NCV) fund selling a new issue.
Given the coupon on the sister CEF of 5.5% there is no reason to believe this will be any different. The issue from last week is trading on the OTC market yet at $24.95 and came to market at $24.75—it should trade up another 30-40 cents when big board trading starts.
As a CEF the issue requires a 200% asset coverage ratio–so very safe and investment grade.
No OTC Grey market has yet been announced.
The preliminary prospectus can be found here.
Hi Tim NZCZP is the symbol for this new issue.
Thanks wedgehead.
This may trade quickly. The symbol is active on Fidelity today but you cannot trade yet (quote only)
Hi Steve–not able to pull up on the eTrade platform yet.
Morningstar’s BusinessWire reports that this issue has a 5.625% coupon, and is “AAA” rated by Fitch. The link to the report is:
https://www.morningstar.com/news/business-wire/BWIPREM_20180913006151/allianzgi-convertible-income-fund-announces-the-offering-of-1000-million-of-5625-series-a-cumulative-preferred-shares.html
SPM–you are probably right–the filing hasn’t hit the SEC–but they are slow sometimes to get things posted. That would be a bonus rate compared to the last one at 5.50%.
will be interested to see if it impact(s)the price of NCZ.PR.A, the day low was $24.77, closed at $24.85