mREIT Ellington Financial Inc (EFC) will be selling a new issue of fixed rate reset preferred stock.
Fixed rate resets carry a fixed rate coupon for about 5 years and then ‘reset’ at the 5 year treasury plus a fixed ‘spread’. They then reset every 5 years there after.
The company has a fixed to floating rate issue currently outstanding which carries a 6.75% coupon. The issue is not redeemable until 2024.
af was right on this one and EarlyBird suggests an initial coupon of 6.25%