F&G Annuities and Life (FG) has priced their previously announced baby bond with a coupon of 7.30%.
This is a large issue of $375 million (15 million shares (bonds).
The issue is rated a notch or 2 under investment grade by the major ratings agencies.
It will be a week or 10 days before this issue begins to trade on the NYSE.
The pricing term sheet is here.
I should have realized they’d ink the deal lower than the org 7.50%
They set up for 150 and did 375mm. With limited size offerings!
I misread original offer. They said 7.30% and they delivered it. FGN firm after deal
I do see AGNC is coming approx 8 1/8
AGNC what?
This yield seems low to me versus the larger and higher rated sub debt (but in similar businesses) of Athene – ATHS, which is close to the same yield (trading only a tad over par net of accrued interest), but rated Baa2/BBB. Athene also is a fixed to float (on the 5yr) so you have protection against rising rates (if you want that versus a perpetual fixed coupon). I own 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. The Debentrues are unsecured, junior subordinated obligations of the company and are unsecured, subordinated obligations of the company and will rank junior to the company’s senior debt, junior to unsecured, subordinated indebtedness of the company and will rank equally with all existing and future unsecured, junior subordinated of the company. See the IPO prospectus for further information on the debt securities by clicking on the ‘Link to IPO Prospectus’ provided below.
I suppose as a representative of a specialized branch of the grammar police, I’ll point out that as ex president of Harvard University, Claudine Gay discovered, it’s customary when quoting someone else’s work, to both cite the source and use quotation marks. – in this case, QuantumOnline. I don’t think there’s a way to provide a specific link, but it’s always the fair thing to do…
I need my morning caffeine….
c’mon man
I know… I’ll accept the nitpick of the day award.
I will say, that as a member of that branch, 2wr, I’m in good company.