New Residential Investment Corp Prices FTF Preferred

mREIT New Residential Investment Corp (NRZ) has priced the fixed-to-floating rate preferred previously announced.

The shares will carry a fixed rate of 6.375% for about 5 years–until 2/14/2025, after which it will float at 3 month Libor plus a spread of 4.969%.

The company currently has 2 other preferred issues outstanding, both fixed-to-floating rate issues, which have traded fairly strong–those issues can be seen here. Neither of these issues are redeemable until 2024.

These shares are unrated.

Trading commences immediately under OTC Grey market temporary ticker NRESP.

The preliminary prospectus can be read here.

5 thoughts on “New Residential Investment Corp Prices FTF Preferred”

  1. When I look at the rather weak trading in AINGZ/AGNCP, I wonder how flippable this will be. (OK, 25bp higher coupon is worth something.)

  2. In my opinion you’d be better off buying NRZ-A or B if interested in the preferred issues of NRZ. Yield to call of both these issues in the low 6% range in August 2024 and will likely be called assuming the same conditions then as now (a big assumption). If not called, you’ll enjoy a much higher yield than this new C issue. Investors should not see a below $25 price as more attractive than a premium price, in fact it’s often the opposite.

    1. Agree with you Larry, provided it was a long-term hold. My aim is to scalp NRZ-C as soon as possible.

Leave a Reply

Your email address will not be published. Required fields are marked *