Giant Insurer Allstate Announces New Preferred

Giant insurer Allstate Corporation (ALL) has announced a new non cumulative, perpetual, qualified preferred stock issue.

The issue will have an early redemption period starting in January, 2025.

The issue will be investment grade and thus we expect this issue to have a sub 5% coupon.

The company has stated they may redeem preferred stocks with the proceeds of this new issue. All of their outstanding issues can be seen here–and you can see the ‘snoozers are losers’—big time on the ALL-A issue which had traded as high as $26.70 recently and now has plunged down to $25.55.

The preliminary prospectus can be read here.

Thanks to Eugene and If you Prefer for being right on this one.

14 thoughts on “Giant Insurer Allstate Announces New Preferred”

  1. Today, I purchased AXS/D at $25.34. This is investment-grade rated by BBB and Moodys and is callable.

    Goes ex-div on 11-14 for $0.34.

    Coupon is 5.5%.

    Obviously I am hoping they do not call this in for at least awhile

    1. Thanks for the tip SteveA–that is right in my wheelhouse–tied to $25 with no call risk.

      1. Odd call language in AXS-D prospectus which seems to imply they can only call for general purposes at $26 and at $25 “following the occurrence of a tax event” only, yet it’s the same language as in AXS-C where they managed to call it @ $25 in April 2017.

        1. 2WR–I’ll have to re-read–I would assume it would be a typo if that were the case.

      2. Can you please help me understand why there is no call risk? Apologies if I’m missing something obvious.

  2. I imagine the yield really will be quite low. Their last preferred was 5.1% a few months ago, and with JPM-J just issued at 4.75%…..

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