THE OTC GREY MARKET TICKER IS HRLLL.
Heartland Financial (HTLF) is selling a new issue of Non-Cumulative preferred stock. HTLF is a holding company and owns banks in 11 different states.
Headquartered in little Dubuque, Iowa, the company has around $13 billion in assets.
The issue will be a fixed-rate reset preferred meaning it will have a fixed coupon for around 5 years and then will reset at the 5 year treasury plus a spread. It will then reset every 5 years there after while outstanding. Right now the 5 year treasury is around .30% – so the key to the issue is what the spread end up being (pricing not yet announced).
The issue will be non-cumulative, but qualified.
The issue will trade on NASDAQ under ticker HTLFP after a stint on the OTC grey market (ticker not yet announced).
The preliminary prospectus can be read here.
mcg was on this early with SteveA tagging on.
Pleasantly surprised to be able to open a starter position on HRLLL at par this morning using Fidelity online. This after being told by Merrill that I couldn’t buy it thru them because it was trading OTC.
Initial rate is 7.00%
It will then float at five-year treasury rate plus 6.675%.
https://www.sec.gov/Archives/edgar/data/920112/000114036120014419/nt10012733x4_424b2.htm
Yes, the adjustment was the key point for me…I respect Kroll rating agency. Still its a bank…But it didnt cut its common divi last crisis so maybe management is still conservative.
I got some at $24.72 a few minutes ago. Not a fan of banks but not even close to being over exposed in this sector.
OTC symbol is HRLLL
Heartland Finl Usa Inc Depositary Shs Repstg 1/40th Perp Pfd Ser B
(was looking to see if BIP OTC was published – not interested in this issue but I ran across it for those who are)