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Schwab to Test The Waters

TimH posted that Charles Schwab will be testing the waters today with a new fixed-rate reset perpetual preferred share issue. The preliminary prospectus can be read here.

This is a $1,000/share issue and the shares will not be publicly traded. Just the same the issue is of note as it has been weeks (or months) since we have seen a new issue of preferred stock. I will be curious to see the level of pricing on this new issue. Given that Schwab has a couple outstanding perpetual preferreds that are trading strongly I suspect the coupon on this new issue will be pretty darned meager.

Last week Medical Transcription Billing Corp (MTBC) did sell some preferred shares (MTBCP) (729,000) – but it was a reopening of a previous issue. The company is a serial issuer of preferred shares and after this new sale there will be over 4 million shares outstanding.

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