Citizens Financial Group (CFG) has announced the pricing for their previously announced new fixed rate perpetual preferred.
The issue will have a fixed rate coupon of 5.00%. The issue is rated BB+ (a notch below investment grade). This coupon is a bit skimpy as recent issues that were rated BBB- (BAC for example) – had 5% coupons, but just the same this will eventually trade above $25–although it would seem $25.30 would be the ceiling.
As of 8 a.m. central time the SEC pricing sheet has not been posted so some info is missing in the chart below–we will update it when the data is posted by the SEC.
Why buy Citizen when Capital One is selling for the same price and is less than 6 weeks away from 1st div. ?
Plus it is IG
It should have been 6% the coupon to arise a little interest at least for me.
Pass.
Range is 25.06 – 25.12.
Pass
And yet it’s currently trading 25.06-25.12.
Wow, BAC issued at 5% just a few weeks ago. Obviously BAC is a much better and IG issue.
trading underway. 25.08 @9:40 a.m.. thus return will be under 5%.
And, they have announced a giant common buyback. Is this issue borrowing to pay for same?
This is what scares the crap out of me. Yes, companies are borrowing to buy back common stock. Their fancy financial wizards think this is really smart to do and a nice return.
I come from the school of common sense. Borrowing money to buy stocks is not a smart thing to do.
It’s not only dumb…..prior to 2001 it was illegal.
BAC-N, at 5%, is now trading at 25.85.
Man-o-man, that is a paltry coupon for a sub-IG issue. Not even close to meeting my requirements.
Time to take a break from IPOs?
Martin, it isnt in my IPO flipping wheelhouse. The 10 yr jumped 25 bps since its low point, yet they keep sending out lower yield lower quality issues. Makes SLMNP at 5.85% look like a highway robbery steal.
GRIDBIRD
Just got another batch of SLMNP for $1031…..and I thank you!
Malka