Citizens Financial Group Prices Perpetual Preferred–Updated

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.

The company press release on this issue can be read here.

The final pricing document can be read here.

13 thoughts on “Citizens Financial Group Prices Perpetual Preferred–Updated”

  1. 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

  2. Wow, BAC issued at 5% just a few weeks ago. Obviously BAC is a much better and IG issue.

    1. 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?

      1. 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.

  3. Man-o-man, that is a paltry coupon for a sub-IG issue. Not even close to meeting my requirements.

      1. 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.

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