The newer 6.50% fixed – reset rate preferred from utility NiSource will finally start trading on the NYSE after trading on the OTC market for the last month.
The permanent ticker for the issue is NI-B. The issue is cumulative in respect to dividends and dividends should be qualified for preferential tax rates.
The issue popped a bit in price today and closed today at $25.35.
This issue was originally announced here on 11/28/2018.
This issue is a large issue of 20 million shares and is lower investment grade rated by S&P at BBB-. The issue is 1 notch under investment grade according to Moodys at Ba1.
The issue is a bit unique in that the reset rate, which will ‘kick in’ on 3/15/2024 will key off the 5 Year Treasury rate instead of off 3 month Libor. The issue will reset at the 5 year treasury plus a spread of 3.632% until 3/15/2044 at which point an additional 1% is added to the initial spread.
We will now add this issue to the various listings of the website.
Disclosure–we do own a starter position in this issue.