Insurance and annuity company Corebridge Financial (CRBG) has announced they will be offering a new $25 subordinated debenture with a maturity in 2064.
CRBG is a giant sized company with assets of over $382 billion as of 6/30/2024, but beyond that I am not familiar with the company
I expect the issue to be low investment grade–BBB-.
The preliminary prospectus can be found here.
Thanks as always to J for being on the lookout for new issues.
Users who liked this:
Term sheet (FWP):
https://www.sec.gov/Archives/edgar/data/1889539/000162828024048405/crbg-fwp11192024.htm
Moody’s report (Baa3 by Moody’s):
New York , November 19, 2024 – Moody’s Ratings (Moody’s) has assigned a Baa3 (hyb) rating to the junior subordinated notes to be issued by Corebridge Financial, Inc. (Corebridge; senior unsecured debt Baa2) maturing in 2064. Proceeds from the offering will used for general corporate purposes. The outlook on Corebridge and its insurance subsidiaries is unchanged at stable.
https://www.moodys.com/research/null-Moodys-Ratings-assigns-Baa3-hyb-rating-to-Corebridge-junior-subordinated-Rating-Action–PR_1000010616?cid=GAR9PTU7VKT2671&emailToken=eyJ0eXAiOiJKV1QiLCJhbGciOiJIUzI1NiJ9.eyJVc2VySWQiOiJkYzVkYjczMC01NTBiLTQ3ZjctYjhjZi05NzY2ZjAxZmU0MzMiLCJEb2NJZCI6IlBSXzEwMDAwMTA2MTYiLCJjcmVhdGlvbkRhdGUiOiIyMDI0LTExLTE5VDE1OjQ5OjAwLjc5MzQzNy0wNTowMCIsImV4cCI6MTczMjMwODU0MCwiVXNlck5hbWUiOiJjcGFtaWtlbWJhQHlhaG9vLmNvbSIsIlVzZXJUeXBlIjoiMiJ9.OEYqyRVkttyUO90Wer6qRGYEJwOTk3paH9Q7pOKqOlw
I own ATHS – Athene sub debt, (which is a comparable company to Corebridge), which I actually like better than this even where it trades today plus it floats if not called so that may/may not be beneficial… also rated higher by rating agencies. I haven’t looked into the Corebridge filing but I assume it’s not a qualified dividend.
ATHS – Athene Holding Ltd 7.250% Fixed-Rate Reset Junior Subordinated Debentures due 2064 redeemable at the issuer’s option on or after 03/30/2029 at $25 per note plus accrued and unpaid interest, and maturing 03/30/2064.
Interest distributions of the Annual Fixed Interest Rate will be paid quarterly on 3/30, 6/30, 9/30 & 12/30 to holders of record on 3/15, 6/15, 9/15 & 12/15 prior to the payment date (NOTE: the ex-dividend date is one business day prior to the record date). The Annual Fixed Dividend Rate will be 7.25% until the first redemption date, then it will be equal to the sum of the Five-Year U.S. Treasury Rate on the applicable fixed rate calculation date plus 2.986%, resetting every 5 years thereafter on applicable fixed rate calculation date (see prospectus for more details).
The issuer may elect to defer the interest payable on the Notes on one or more occasions for up to 60 consecutive months (see prospectus for further information).
This security is possibly subject to an early call before 03/30/2029 at $25.00 (100%) of their principal amount plus accrued and unpaid interest within 90 days of a tax event; before 03/30/2029 at $25.50 (102%) of their principal amount plus accrued and unpaid interest within 90 days of the occurrence of a rating agency event (see prospectus for further information).
This security was rated as Baa2 by Moody’s and BBB by S&P at the date of its IPO. This security was rated as BBB- by Fitch Ratings Co. at the date of its IPO
I’m heavy long Athene and Aspen. too including ATHS They have a good reputation. But they are poorly priced (high yield indicates risks). I’m hoping they dont try a delisting move for any of the issues. Corebridge raised 600 w this placement!!
Normally I would take a position in something like this. However; I am conflicted with the real possibility of long term rates ticking higher. Wondering if this may be a better buy in 3-6 months?
I was told they are a spin off of wells Fargo. You can see a market cap of 17 billion.
And it screens out pretty good. My black box screener likes them…. . IBD gives it some OK ratings. I deem them an ongoing concern. No wonder the price talk of 6 3/8. I have expect 6 1/8 final.
And it screens out pretty good. My black box screener likes them…. . IBD gives it some OK ratings. I deem them an ongoing concern. No wonder the price talk of 6 3/8. I have expect 6 1/8 final.
OH BTW evidently it’s an AIG spin off?? OK by me.. Priced at 6 3/8
Corebridge is also currently offering 30 mil shares of common stock (568 mil outstanding) at $31.20. Especting $936 mil gross from the common stock raise.
Their financials appear to be very inconsistent. 2024 Q-3 loss of $1,187 mil.
6 3/8 expected rate..
Inherited / took control of some AIG assets a few years ago.
I had two term life insurance policies from AIG and got transferred to Corebridge. The terms after the end of the policy change to an insane rate vs the AIG contract.
This might be an opportunity to get back the money I send to them for premiums. Much like using VZ and owning VZ for their dividend. Almost like a free service.