As predicated by some the new $25 perpetual preferred issue from insurer Enstar Group (NASDAQ:ESGR) has priced with a coupon of 7%.
The issue is non cumulative and of course pays quarterly dividends with the 1st dividend to be paid on 3/1/2019.
The company will sell 4.4 million shares with another 660,000 available for overallotments.
Starting tomorrow the shares should trade under the temporary ticker of ESGRL on the OTC Grey Market. This means that it may be Friday before some investors see it listed on their particular broker website (some brokers are faster than others). Potential buyers will likely get as good a price on Friday as they will tomorrow as 5.06 million shares do take some time to sell.
Shares will trade on the NASDAQ under the permanent ticker of ESGRO.
The issue is rated BB+ by S&P and BB+ by Fitch–both of these are 1 notch below investment grade.
Thanks to George for keeping us on our toes.