Below are press releases from company’s that have preferred stock or baby bonds outstanding.
Valley National Bancorp Declares Its Regular Quarterly Preferred and Common Stock Dividends
SL Green Realty Corp. Announces Common Stock Dividend
CoBank to Offer Series K Preferred Stock
FAT Brands Announces Speaker Line-up Ahead of Third Bi-Annual Summit
OFS Credit Company Provides July 2022 Net Asset Value Update
Energy Transfer Completes Sale of Its Interest in Energy Transfer Canada
It looks like the VLYPO 5.5% preferred dividend does not go “live” with the floating rate until 9/30/22. With the rate possibly shooting up to 6.6% at that point (dividend determination date 9/28/22), definitely susceptible to being called. At assumed 3% rate for 3MO Libor, quarterly dividend payment would increase for the bank by $270K.
“A cash dividend of $0.34375 per share to be paid September 30, 2022 on Valley’s 5.50% Fixed-To-Floating Rate Non-Cumulative Perpetual Preferred Stock Series B”
Quantum Online had the floating date as of 6/30/22 for VLYPO – which was wrong.
Always better to read the prospectus:
“Dividends on the Series B Preferred Shares will be payable in arrears when, as and if declared by our board of directors or a duly authorized committee of the board, (i) from and including the original issuance date to, but excluding September 30, 2022, at a rate per annum equal to 5.50%, on March 30, June 30, September 30 and December 30 of each year, commencing on September 30, 2017 and ending on September 30, 2022,
and (ii) from and including September 30, 2022, at an annual floating rate equal to three-month LIBOR plus a spread of 3.578%, on March 30, June 30, September 30 and December 30 of each year, commencing on September 30, 2022, except in each case where such day is not a business day as described under “Description of Series B Preferred Shares—Dividends” on page S-26.”
Tim – these headlines of interest are fantastic! Thanks!
Rob – Right now, both CUBI-E and F, and PNC-P have just passed their ability to call dates on their F/F based on 3 month LIBOR issues and all three will make it past the next coupon without being called…. PNC-P, which is already floating and I believe will pay around 6.85% on 9/15 coupon, should go to over 7% if it were to be calculated today and it is rated much better than VLYPO. When taking into account the pricing of KeyCorp at 6.20% vs VLYPO jumping to only 6.60%, I would think the susceptibility of this one being called are not that high but that’s pure opinion on my part.
2WR:
PNC likely made a mistake even letting the PNC-P dividend float for one more quarter. This preferred has an enormous 60M shares outstanding, so the large increase in the quarterly payment is going to cost the company an extra $3M for the 11/1/22 payment when compared to the original dividend amount of $.3828.
I can’t imagine they will make that mistake again, especially since capital has already been raised via their large new private 6.2% preferred. I’d look for that call announcement at the end of October for PNC+P with proceeds one month later.
2WR – why do you say PNC-P will pay on their 9/15 coupon?
Their Dividend payment dates are 8/1 and 11/1 – with ex-div dates 7/15 and 10/15. There is no 9/15 date.
I would bet on PNC-P being called with the 11/1 payment date given they have raised funds to replace it if they choose – so given that it is selling 22 cents over par, this one to me is more for the nickle grabbers compared to some of the new issues recently released
Mav – Sorry ’bout that…. As I was writing about both CUBI and PNC at the same time, I screwed up payment date when writing about PNC but using CUBI payment date instead of PNC’s.. And I don’t disagree with you as to expectation for 11/1 call… As you know, I’m a notorious nickel grabber so I’m in….. I like situations where when I’m wrong I do better than my original expectations…. PNC-P fits the bill..
I think there’s a reasonable probability that PNC-P will not be called. But even if it is, at closing price today, YTC about 4%. OK for short term money. Not seeing a lot of downside here, but possible upside for sure.
Thanks for the clarification. I didn’t think I was missing something but you can never be too sure.
Yeah, it’s a safe bet for grabbing nickels. I just prefer some of the new issues instead for example I bought the new KEYHV today.
But speaking of grabbing nickles – did we safely pass the point of no return on a call of RZA this Sept 15th? Assuming 30 day notice required. seems like we have which would put the next dividend period over 7%
Yes, I agree we’re past the date for RZA to be called on the next payment date of 9/15, however the importance of that fact is not as significant as it is for the 3 bank issues of CUBI and PNC because RZA remains callable upon 30 day’s notice AT ANY TIME, NOT at any payment date like the CUBI preferreds or PNC-P. So, although not likely, I think RGA could theoretically announce a call of RZA today for a call date of 9/17 approx and only pay the new rate for a total of 2 days approx while paying the old rate for the other 28 approx. Having passed the date for the others guarantees 90 days worth of accrued at new set floating rates for CUBI-E and F and PNC-P.
Thanks 2WR for the clarification. Yeah, I agree that is a difference worth noting
You’re welcome Rob.
You’re welcome Rob. I have a page of the floaters here.
https://innovativeincomeinvestor.com/floating-rate-and-fixed-to-floating-rate-preferred-stocks/
Tim,
You might want to add: ALL-B, SCE-J (I own some), SCE-K
Also note that there are FTF baby bonds as well.
Thanks again for your efforts. You should be charging me tuition.
nhcoast,
I have never heard of FTF baby bonds. Can you give an example?
Bill
Bill–nhcoast is referring to some like this–
https://innovativeincomeinvestor.com/security/allstate-debentures/
nhcoast–yes those are all on the master lists–I held the FTF list to pure regular preferreds. Let me ponder whether to add the trust preferreds and baby bonds.
Yes. ALL-B is actually a baby bond.
Some other examples are RZA, RZB, ZIONL. ENBA, AQNA, AQNB, NSS
Yes–well aware it is a baby bond.
Has anyone received a notice of ALL-B being called on its first call date? The prospectus looks like Allstate is to give 30 days notice….
I own it at several brokerages and none of them have sent any such notice. We might get lucky here and get at least a little of the higher dividend.
SNewman–I haven’t see anything.
this is a common misconception. it went floating the day after the June 30 payment date, so the first dividend (which looks back, not forward) is floating and not fixed.
Can anyone tell me if AGRIP is a 144a issue, My Morgan Stanley representative was unable to purchase for me recently. I was able to purchase CNKQP however, I asked if the AGRIP security was a 144A issue, but he could not answer my question.
Can’t tell you for sure but I can tell you Fidelity tags it as 144a and won’t allow an opening order thru Active Trader Pro. They also tag CBKPP the same way.
Its genesis I would assume that it has to be, but I havent found the “smoking gun”. 144a preferreds require special eligibility. In AgriBanks annual filing it makes reference to AGRIP (Series A) which basically implies such. But for some reason unbeknownst to me some of these “leak out” onto OTC and its at that point where each brokerage makes a determination if they can be bought or sold by you.
Perpetual Preferred Stock
We have an authorized class of preferred stock that may be iss
ued to investors in accordance with applicable rules of offering. This
stock is non-voting and may bear dividends. There are 8 million shares authorized at $100 per share
We have $250 million of Series A Preferred Stock outstanding, representing 2.5 million shares at $100 per share par value. This series may be held or transferred in blocks having an aggregate par value of $25 thousand to investors meeting the eligibility requirements and an investor must hold at least 250 shares. We used the net proceeds from the issuance for general corporate purposes. For regulatory capital purposes, our Series A Preferred Stock is included in permanent capital, tier 1 capital and total capital, subject to certain limitations as defined by the FCA.
Hmmm. With Cobank issuing this new Series K preferred, could it be that they will be calling CBKPP rather than pay the higher rates when it goes floating 10-1-22. I would not bet against that
Mav, I was light on short duration issues…Not anymore, ha. Bet? I love this bet its getting called more than my 9.5 Indy Colts over bet I made. And the double whammy is I wont be allowed access to purchase because it appears it will be a 144a issue.
Sounds like it will be called, but at 101.35, there’s really not much downside there.
Yeah, bummer the new CoBank issue will be a 144a issue.