Prudential Financial Baby Bonds Finally Trading

The new baby bonds which Prudential Financial (NYSE:PRU) priced on 8/7/2018 are now finally trading.

The issue is trading under the ticker PRS and last traded at $24.95.

The issue has a coupon of 5.625% and being a debt issue the interest payments are not qualified payments for tax purposes.

The issue is investment grade with S&P having the bonds at BBB+ and Moodys having them at Baa2.

This was a fairly huge issue with $500,000,000 being issued with another $75,000,000 allowed for over allotments–a total of 23,000,000 baby bonds being sold.

The bonds do not mature until 2058, but have an early redemption available starting in 2023.

The offering documents are here.

We note that PRU has 2 other baby bond issues outstanding.  PJH has a coupon of 5.70% and became callable in December 2017–currently trading at $25.44.    PJH has a coupon of 5.75% and is trading at $25.55 and has been callable since 3/2018.

We currently have no interest in the bonds primarily because of the long dated maturities.