Further Detail on Lincoln National Investment Grade Preferred Below is further detail on the new preferred from Lincoln National Corp (LNC)
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Link to LNC Series C term sheet. https://www.sec.gov/Archives/edgar/data/59558/000119312522287810/d394597dex11.htm
I am alarmed by LNC’s 9.0% rate on the new preferred. Why would they do that? Are they worried? Concerned about required capital? More? Their losses this quarter were staggering, but I am not any kind of expert in reviewing insurance financials. Any opinions on the viability of LNC?
So- where’s the reset issue? Trading? Symbol?
I heard it was in five or six years to a big number over the 5 yr treasury….
Dividends will accrue on the Liquidation Preference Amount (i) from the date of original issue to, but excluding the First Reset Date, at a fixed rate per annum of 9.250%, and (ii) from, and including, the First Reset Date, during each Reset Period at a rate per annum equal to the Five-Year Treasury Rate as of the most recent Reset Dividend Determination Date plus 5.318%.
bought some of the $1000 @ 1052.50. cusip 534187BR9.
How/where did you do that? Bond desk?
Through my Morgan Stanley account – I assume the bond desk.
Market is concerned they are one downgrade away from being split rated high yield. Still Barron’s and others in awe at yield.
There are two issues: 9% straight and 9.25% reset, each for $500 M.