Enterprise Financial Services Corp (EFSC) will be selling a new non-Cumulative perpetual preferred stock issue.
The $12 billion banking company has offices in 13 states spread across the entire United States.
The issue will be non-cumulative and qualified with a typical optional redemption date starting in 2026.
The issue will trade under permanent ticker EFSCP on NASDAQ.
The preliminary prospectus can be read here.
I am not very sophisticated, but here is my simple thinking.
Fair value on a Kroll BBB preferred is 4.75% to 4.875%. Because the Ozark preferred was priced richer than that, it deserves to sell at a discount. This Enterprise preferred, which is also a Kroll BBB (per the broker), should trade at a premium if priced at 5.0%.
New ticker is EFSSL.
Its a 5%, just got off the phone with the I R Mgr.
Chuck P–figured that. You never know if these small banks will run up after issuance or not. I bot the Bank of OZK issue and it has moved a bit lower in the 24.90 area. Probably will lay off the small banks.
The OZK preferred was priced at 4.625%. If this issue is priced at 5.0%, that’s a pretty big difference. Do the credit ratings justify that differential?
@Tim McPartland – when a buy of new issue such as OZKAP goes below par or below what you expected, do you have a ‘sell stop’ ? Or, do you just wait it out and exit on a bounce later as it went below what you had anticipated?
mSquare–typically I wait it out and it resolves, but I feel we are in a new ‘ball game’ now with rates popping and just sent it packing.
Any avian yield talk?