Utility | Innovative Income Investor

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

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.

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%.