CLO owner Eagle Point Income Company (EIC) has priced their new issuance of term preferred stock.
The issue prices at 7.75%. There is an optional redemption in 2025 with mandatory redemption in 2028.
The issue will trade under ticker EICB when it begins to trade in about a week. No grey market ticker has been announced.
EIC has another term preferred outstanding which can be seen here.
The pricing term sheet is here.
I’m interested in the WFC one too, and see some articles about it. Does this indicate that their f2f one will get called and essentially replace with this new one?
JB – All the new issue Use Of Proceeds says is, ‘We intend to use the net proceeds from the sale of the depositary shares representing interests in the Series EE Preferred Stock for general corporate purposes, including, but not limited to, the redemption of some or all of one or more series of our outstanding preferred stock and related depositary shares.” However the new issue size matches up with the size of the WFC-Q issue which goes to 8.94% FIXED on 9/15/23 if it is not called. That’s a pretty good indicator of what to expect, especially since they would have to announce the call on or about Aug 4. WFC-R is not callable until 3/15/24 and I think that would be next in line…
thanks for sharing your interpretation. I’ve been reading a lot of what you folks have to say with great interest.
anyone have an opinion about the capitol one preferreds instead of in addition to the wfc? (or jpm).
Aren’t COF’s preferreds all relatively low coupon fixed rate perpetuals? That’s a horse of a different color in my book.
It is available on interactive brokers with no phone call. Ask is 102.4, but you may get a lower bid acccepted.
Would you please provide the symbol or CUSIP?
95002YAA1
https://www.sec.gov/Archives/edgar/data/72971/000119312523188178/d508398dfwp.htm
Is the distribution treated as interest or dividend ? If dividend, would be QDI?
For 2022, EICA was non-qualified dividend. Hence EICB should be similar.
Is the distribution for the WFC preferred Cusip# 95002YAA1 treated as interest or dividend ? If dividend, would be QDI?
if your broker gets it right, it would be QDI
I am wondering which new WFC preferred you are referring to. There was a $1000 par issued recently with a coupon of 7.625 and 1st call 2028
I get that it’s term…. BUT I will take the new WFC all day long over this.
A short maturity doesn’t mean much if default risk is much higher.
How do you buy the new wfc issue? It’s not available online-do you have to call?
WFC issue trading ~102…yes would likely require phone desk
I just tried both Fido and vanguard desks. Fido doesn’t sell it, and vanguard has a new policy that they don’t sell floating rate securities that aren’t exchange listed.
Had to call the Schwab fixed income desk, but eventually got a small amount at $102.97.
Effective yield is 7.4% so that would be a reasonable replacement for my soon-to-be-called WFC-Q. Fully understand that in event of any call yield would be somewhat lower.
I had to pay accrued interest, so it’s likely that this issue will not trade as a regular Preferred Stock.