New Residential Investment (NYSE:NRZ) has priced their new offering of fixed-to-floating rate preferred with an initial coupon of 7.125%.
This seems to be 1/8% below what the original guesses were for this coupon. Importantly to investors the spread of 5.64%, once it begins floating, seems investor friendly.
It will be very interesting to see how this issue of 10 million shares trades tomorrow (Thursday). The company has a FTF 7.50% issue outstanding which was trading in the $26.50 area until today when it fell as low as $25.80 before recovering to $26.20. It is likely we will not have a personal interest in this one for a long term hold. Whether we want it for a ‘flip’ will depend on initial trading on the OTC Grey market.