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%
The preliminary prospectus can be read here.
Just spent an hour looking at Ellington. VERY complicated, supposedly master hedgers, involved with every level of debt. Zow! Now, throw in the pref-b??
Would hate to try to unwind in a credit crisis.
May buy as a trade?
Who’s looking at trading of recent mREIT preferreds and thinking, yeah we can price it at 6.25? Their 6.75 trades stronger than I’d expect.