PartnerRE LTD (Not publicly traded) will be selling a new issue of $25 preferred stock.
The shares will be non-cumulative, but qualified. The issue will be investment grade.
PartnerRE has 3 other preferred stock issues outstanding which can be seen here. All 3 issues become redeemable on 4/29/2021 and the company implies they may call some or all of the shares.
The preliminary prospectus can be read here.
J was on this one right away this morning.
I passed the I’s look better to me
Priced @ 4.875
Per FWP
Done deal
8M shares
Can take out most of the H
We’ll see what happens happens with the G and I
The H (7.25%) and G (6.5%) are both cumulative. Some of the very few cumulative shares still outstanding by the insurance industry since the capital tier rules were changed after the great financial crisis. I’ll be sad to see them go if called. The G looks like a good play here as it is trading at call+accrued and they will likely call the higher coupon H first so no financial risk if called and some chance that it doesn’t get called. For these orphaned preferreds with no common stock, I do prefer cumulative shares to prevent shenanigans.
PTNPF
Is any brokerage trading this at the moment?
I tried Schwab, symbol not valid
I expect the 7.25% and 6.5% are toast. Hoping they keep my 5.875%…:)
Rated A+ by 3 different rating agencies. My guess is pretty low coupon.
Not PartnerRe Ltd., Chuck…. It’s A- by S&P and the preferreds, which this issue is, is BBB
PartnerRe
Expected Ratings Moody’s : Baa2 (Stable) S&P: BBB (Negative)
Size (4mm $25 par shares
4.875-5.000%
QDI Yes
5% would be generous for BBB. My guess is the coupon is elevated since these will be orphaned preferreds with no listed common stock.
Quite a small issue. Lets hope they don’t get beyond calling the H shares.
If the 4 million shares is right, that’s only $100 million. The outstanding H alone is near $300 million.
Meanwhile, the G is around $25.28. If it gets called 5/1 you get $0.27, so you lose only $.01 (plus having the cash tied up for almost 2 months). If it doesn’t get called then you have a 6.5% issue that will probably get a little pop.
If you’re sitting on some cash, I think it’s worth the risk.
They redeemed the F-series 5.875% prefers at the end of last year IIRC. They sold some 4.5% notes to do it.
That does not bode well for any of their outstanding issues hanging around.