New Issues from Chimera Investment and Energizer Holdings Now Trading on NYSE

The new fixed-to-floating rate 8% preferred from mREIT Chimera Investment (NYSE:CIM-D) is now trading on the NYSE and is trading around the $24.80 mark. It looks like it may take a few weeks before this issue gets much traction. Chimera has 2 other f-t-f issues outstanding–1 is at a 7.75% coupon and the other at 8%. They also have a 8% fixed rate issue outstanding. With the trading of the already outstanding issues it would appear that the new issue has 20 or 30 cents to upside from here. The issue is trading under CIM-D.

The final pricing document for this issue is here.

The new $100 7.50% mandatory convertible from battery maker Energizer Holdings is now trading on the NYSE under the ticker ENR-A. The shares which traded strongly a few days ago have weakened and now are trading under $100/share at $99.30.

The final pricing document for this issue is here.

18 thoughts on “New Issues from Chimera Investment and Energizer Holdings Now Trading on NYSE”

  1. | Today, 3:28 PM
    PG&E +25% as investigation reportedly clears company in 2017 wildfires
    PG&E (PCG +24.8%) skyrockets following news that a Cal Fire investigation has cleared the company from issues surrounding 2017 wildfires in the state.
    Cal Fire says it has determined that the October 2017 Tubbs Fire was caused by a private electrical system adjacent to a residential structure; investigators did not identify any violations of state law related to the cause of this fire.
    Update at 3:30 p.m. ET: PCG shares +76% after a brief trading halt.

      1. Thank you Tim…and this PCG liability issue is quite interesting when you mix in CA politics. Aside from the widows and orphan aspect of the potential BK, there’s a big issue in with control of everything by Sacramento. I’m not an expert on this, though the gist is that the state recently enacted a law to move to renewable energy in a big way by I think it was by 2030. Many utility bills are moving to a classification of being “green”. The bottom line, activist city councils in many parts of the state are defaulting their constituents (with a not-so-obvious exit option) into utility pricing structures that require paying more for the same juice they’re already receiving – but they’re calling it green. The theory I suppose is the funds will be used to develop renewable energy. During the drought, water restrictions were established, and everyone used a lot less water. Then the water companies complained, so they raised the water rates. Bottom line, less water is used but the bills are the same. The takeaway is there are major changes underway with CA utilities and Sacramento is trying to control all of it. In addition to inverse condemnation, this is a decidedly adverse trend for CA ute investing. For all those interested – Alabama also has inverse condemnation laws on it’s books.

        1. Alpha, if you read into this green stuff from utility guidance, it actually is going to be making these utilities money. At least that is their forward looking guidance minus any inverse condemation fires that drains the kitty down the road of course.

          1. Grid, I agree, seems a positive on the surface. The problem for me is that CA is overly-involved and it seems to be getting worse. I just do not trust that CA won’t try to raid the utes directly or through the courts.

            1. But Grid, I do have to confess to mad-money buying 100 PCG recently on the thought they won’t let it evaporate completely as it’s a cash-cow over time and politics might save the hand that feeds them – today was a good start. Going to let it ride and set up my own divvy plan by selling calls against it until it’s assigned at a significant cap gain or drops to zero.

              1. Alpha, most of us have that flyer purchase itch to scratch. It gets me too!
                I dont know anything about calls and puts so hopefully that is good for you!

            2. Alpha, the funny thing is they actually are very generous on their return on equity for the utes. Some of these out of the ordinary mandates (at least to a flyover country inhabitant that I am) such as electric vehicle purchases are going to be a huge boost for the Utes. But the counterbalance is the inversion condemnation law, politics, and even judicial branch are always lying in the shadows ready to attack. I still am holding my SCE preferreds, not over extended here, so I feel comfortable holding longer term.

              1. Grid, The SCE preferreds were a great call on the negative sentiment. Hoping to see you and others score big on that purchase.

                1. Alpha, you want to see something incredible. Check out the trading price of preferred PCG-A versus SCE-L. PCG-A which has had a year long dividend suspension and financial peril is presently trading with a lower purchase price yield than SCE-L. SCE-L pays and company is presently fine. That is market craziness.

          1. P, That was an interesting and sobering read after which I immediately reviewed my portfolio allocations. lol.

            1. Bottom line is customers will demand they not pay for damages through rates. Politicians will sacrifice the investors and keep their jobs if it comes down to that.

    1. PG&E common was up 80% before it got halted! That’s just crazy. There goes my master plan to add some SCE-L on a big dip…at least for today.

  2. There is a good reason this Energizer Holdings preferred is trading below $100. The mandatory conversion calculation is limited to $46 per common share on the down side. At prices below $46 the conversion will still be made as if the price of the common were $46. The common stock is already trading below that.

    Be very careful of this security. Investors could lose a lot of money if the price of the common drops significantly below $46.

    1. Thanks for the heads up Andrew…I try to avoid holding preferred shares that have mandatory conversion provisions because of the downside risk you just outlined.

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