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?
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%.
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.