In one of the biggest disappointments of the year Selective Insurance (SIGI) has priced their new non cumulative preferred issue.
The issue is rated Ba1 (below investment grade) by Moody’s and has priced with a coupon of 4.60%—-yes 4.60%!! To say I am disappointed in this pricing would be a understatement–while we all knew it would be low–maybe 5.25%—but 4.60%. I had planned to buy a position tomorrow–but it would have to trade very weak for me to be interested.
The SEC pricing term sheet has NOT been filed but the company press release can be read here. When the official details are released I will publish them.