Utility | Innovative Income Investor

CMS Energy Corporation 4.20% Cumulative Redeemable Preferred Stock, Series C

DTE Energy Company 2020 Series G 4.375% Junior Subordinated Debentures due 2080

So long as no event of default has occurred and is continuing, we may defer interest payments on one or more occasions for up to 40 consecutive quarterly periods, as described in this prospectus supplement. Any deferred interest payments will bear additional interest at the rate of 4.375% per year, to the extent legally permitted.

Southern Company Series 2020C 4.20% Junior Subordinated Notes due October 15, 2060

So long as no Event of Default has occurred and is continuing, The Southern Company may defer interest payments on the Series 2015A Junior Subordinated Notes on one or more occasions for up to 40 consecutive quarterly periods as described in this Prospectus Supplement. Deferred interest payments will accrue additional interest at a rate equal to the interest rate then applicable to the Series 2015A Junior Subordinated Notes, compounded quarterly, to the extent permitted by applicable law.

Southern Company Series 2020A 4.95% Junior Subordinated Notes due 1/30/2080

So long as no Event of Default has occurred and is continuing, The Southern Company may defer interest payments on the Series 2020A Junior Subordinated Notes on one or more occasions for up to 40 consecutive quarterly periods as described in this Prospectus Supplement. Deferred interest payments will accrue additional interest at a rate equal to the interest rate then applicable to the Series 2020A Junior Subordinated Notes, compounded quarterly, to the extent permitted by applicable law.

Centerpoint Energy 7.00% Series B Mandatory Convertible Preferred Stock

Shares will be converted on 9/1/2021. The initial conversion rate was 1.5291 shares of common stock if the common stock is trading at $32.70 or above. If the common stock is trading below $27.25 the conversion is 1.8349 shares of common. For market prices between $27.25 and $32.70 the conversion will be the converted at the rate of $50 divided by the market price. Because of the mandatory conversion we post the preferred and commons stock charts below.

South Jersey Industries Inc. 5.625% Junior Subordinated Notes due 2079

The company has the right to defer interest payments for up to 40 consecutive quarters without causing a default. Interest will accrue.

Entergy Texas Inc. 5.375% Series A Preferred Stock, Cumulative, No Par Value

Sempra Energy 5.75% Junior Subordinated Notes due 2079

Spire Inc. 5.90% Series A Cumulative Redeemable Perpetual Preferred Stock

Algonquin Power & Utilities Corp 6.20% Fixed-to-Floating Rate Subordinated Notes Series-A due July 1, 2079

Coupon is fixed at 6.2% until 7/1/2024 at which point it floats at 3 month Libor plus a spread of 4.01% until 7/1/2029 at which point it resets at 3 month Libor plus 4.26% and from 7/11/2049 until maturity it resets at 3 month Libor plus 5.01%.

It should be noted that this note contains a deferment provision on interest rate payments. The corporation may defer interest payments on 1 or more occasions for up to 5 consecutive years. Deferred interest will accrue, compounding on each subsequent interest payment date, until paid. No deferral may extend past the maturity date.

National Rural Utilities Cooperative Finance Corp 5.50% Subordinated Notes Due 2064

There is no publicly traded parent stock

Duke Energy Corporation 5.75% Series A Cumulative Redeemable Perpetual Preferred Stock

NextEra Energy Capital Holdings 5.65% Series N Junior Subordinated Debentures due March, 1, 2079

NEE Capital may defer interest payments on the Junior Subordinated Debentures on one or more occasions for up to 10 consecutive years per deferral period as described in this prospectus supplement. Deferred interest payments will accrue additional interest at a rate equal to the interest rate on the Junior Subordinated Debentures, to the extent permitted by applicable law.

CMS Energy Corporation 5.875% Junior Subordinated Notes due 2079

This issue contains the following provision which is not unusual for utility baby bonds.
So long as no event of default has occurred and is continuing, we may defer interest payments on one or more occasions for up to 40 consecutive quarterly periods, as described in this prospectus supplement. Any deferred interest payments will bear additional interest at the rate of 5.875% per year, to the extent legally permitted.

NiSource 6.50% Series B Fixed Rate Reset Cumulative Redeemable Perpetual Preferred Stock

Coupon is fixed until 3/15/2024 at which time the coupon will be reset at a rate of the 5 Year Treasury plus a spread of 3.632%. It will again be reset on each 5th anniversary until 3/15/2044 at which point an additional 1% will be added to the coupon.

Alabama Power Company 5% Class A Cumulative Preferred Stock

Algonquin Power & Utilities Series 6.875% Fixed-to-Floating Subordinated Notes 2018-A due 2078

Coupon is fixed at 6.875% until 10/17/2023 at which point it floats at 3 month Libor plus a spread of 3.677% until 10/17/2028 at which point it resets at 3 month Libor plus 3.927% until 10/17/2043 then it resets at 3 month Libor plus 4.677% until maturity

Tennessee Valley Authority Reset Rate Series A Power Bonds due 2029

Please read the prospectus. These reset bonds can be reset lower, but NOT higher. Note that anytime the coupon is reset lower you have the right (not obligation) to ‘put’ you baby bonds back to the company

As of 6/6/2020 the dividend is reset to 2.216%

Coupon is reset each 6/1 at the 30 year constant maturity treasury plus a spread of .94%.

Tennessee Valley Authority Reset Rate Series D Power Bonds due 2028

Please read the prospectus. These reset bonds can be reset lower, but NOT higher.

Note that anytime the coupon is reset lower you have the right (not obligation) to ‘put’ you baby bonds back to the company

As of 6/1/2020 the coupon is 2.13%.

Coupon is reset each 6/1 at the 30 year constant maturity treasury plus a spread of .94%

Southern Company Series 2015A 6.25% Junior Subordinated Notes due 2075

SCE Trust VI 5.00% Trust Preference Shares

Duke Energy Corporation 5.625% Jr Subordinated Debentures due 2078

So long as no event of default with respect to the Debentures has occurred and is continuing, we have the right, on one or more occasions, to defer the payment of interest on the Debentures for up to 40 consecutive quarterly periods without giving rise to an event of default. Any deferred interest payments will bear additional interest at a rate of 5.625% per year, compounded quarterly, to the extent permitted by applicable law. See “Description of the Debentures—Option to Defer Interest Payments.”

CMS Energy Corp 5.875% Junior Subordinated Notes due 2078

CMS Energy Corporation 5.625% Junior Subordinated Notes due 2078

Southern Company Series 2017B 5.25% Junior Subordinated Notes due 2077

So long as no Event of Default has occurred and is continuing, The Southern Company may defer interest payments on the Series 2017B Junior Subordinated Notes on one or more occasions for up to 40 consecutive quarterly periods as described in this Prospectus Supplement. Deferred interest payments will accrue additional interest at a rate of 5.25% per year, compounded quarterly, to the extent permitted by applicable law.