Banking company and asset manager Northern Trust (NTRS) will be selling a new fixed rate non-cumulative preferred issue.
Preferred investors have been awaiting this issue anticipating that the company would use the proceeds to redeem the 5.85% non cumulative preferred (NTRSP) that the company currently has outstanding. Since the redemption has been anticipated these shares were trading around $25.50 so only minor damage is done to holders. The redemption can only take place on a dividend payment date, which is January 1 and the payment will be 36.5 cents–at the current price of $25.28 there is 8.5 cents in the shares.
We would anticipate a sub 5% coupon on the new issue as the rating should be BBB+ from S&P and Baa1 from Moodys.