RenaissanceRE Selling New Preferred Issue

Reinsurance company RenaissanceRE (NYSE:RNR) is selling a new preferred issue with a coupon of 5.75%.  Terms are normal terms with an early optional redemption starting in 2023.

The issue is non cumulative but is qualified for preferential tax treatment .

The issue is investment grade.

The permanent ticker of the issue will be RNR-F, but the issue will start trading on the OTC Grey Market as early as today under the temporary ticker of RNREF.

The pricing term sheet is here.

Thanks to reader Jon for the heads up on this issue.

5 thoughts on “RenaissanceRE Selling New Preferred Issue”

  1. Thank you Tim and thank Jon,

    This one could be good. While I hate to bring up another one, perhaps even better, I should. Someone at Doug Le Du’s made a post on a
    I have another question on UNUM Insurance (UNM), a large cap insurance company issued this note, rated BBB- by Moody (IG indeed), with BB+ by SP on 5/21/2018. According to QOL.com, it is still in the OTC market with no meaningful Temp symbol. Some guy at Doug’s made the post, but was trashed by someone who believes in HUGE Taper Fear and HUGE fan of common stocks would maintain great opportunities for the next God know how many years. Do you know the SYMBOL?
    quantumonline.com
    I typically do not have good luck on searching the FINRA type of new issues. THANKS!
    John

    1. Hi John, I think you post got messed up, can you edit it so we can understand it better?

    2. Hi JohnKal–the Unum issue is a baby bond and thus won’t trade grey market. The ticker hasn’t been announced yet. I would expect it to show up on broker databases within a week.

      https://www.sec.gov/Archives/edgar/data/5513/000119312518171670/d526331d424b2.htm

      The baby bond matures in 2058 so there will be interest rate risk (movement in price caused by interest rate increases/decreases).

      We personally shy away from issues dated this far out right now–but it is up to each individual depending on goals and circumstances as to whether they want to lock down the 6.25% bond coupon rate.

      Anyone who trashes another based upon a given individuals circumstances is just an asshole—it is ok to debate and disagree, but beyond that is there is no need for nastiness.

      1. Tim Yes, UNM note apparently was sold to private equity firm. Someone at Doug Le Du’s called Fidelity. Too bad, much better deal, if one assumes that there will be another recession BEFORE the Feds insist on their aggressive time-table. Thank you for your post. RNREF should be a decent buy. I kick myself for not buying BAC-B, too busy try to average cost down on high dividend ones. And your MET-E is another good buy IMHO. Sorry that I do not remember how I registered on your website years ago. I will use my primary email address herewith. Thank you Ray, too.

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