South Jersey Industries (NYSE:SJI) has priced their new issue of baby bonds with a fixed rate coupon of 5.625%.
The issue is a rather large one with 8 million shares (bonds) offered. The ticker is not yet known for this one so readers will need to watch their broker for trading–likely in a week +/- it should begin to trade. There is no OTC Grey Market trading of this issue.
Note that this issue is junk rated. Additionally SJI may defer interest payments for up to 40 quarters without a default.
Potential investors should weigh the true importance of the terms of the issue before making buy decisions. Terms of the offering need to be considered in light of competing issues. I personally may buy this issue because of the lack of reasonable competing issues with a decent coupon–I would prefer investment grade with no deferral periods allowed–but it is what it is and this may be a decent opportunity for many.
The pricing term sheet can be found here.
I guess the link was good for one day? Here is link today. Ticker seemed to change
http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=C849739&symbol=SJI4882383
Steve, this trading as bond in grey market. If you want it you need to call your broker because available only grey not OTC because trade not settled (technically I don’t own it yet). Price sheet says trade 9th T+5 so settles 16th so maybe trades NYSE Monday depends on broker. Thanks for posting link yesterday it helped me a lot.
I heard from broker that the issue was way over subscribed.
Sure feels like this market is very over-heated. Be careful out there, this will end with big price shock someday as the frenzied nature like this never lasts.
Panic buying…
http://finra-markets.morningstar.com/BondCenter/BondDetail.jsp?ticker=FSJI4882383&symbol=SJI4882383
I have my order in through Schwab fixed income desk (via Cusip). You can see the trades using the above link. The price range has been $25.20 – $25.40 although some went in the $25.15 – $25.20 range
For whatever it’s worth, the Merrill rep I spoke to just now says they won’t be able to buy it until Monday 9/16/19. So that means that probably every other broker will be able to buy it later today or are already buying it as we can see from the sales activity… The lots aren’t huge that are selling but you can tell that the average retail Joe isn’t able to get their hands on it yet.
One trade around 12:00pm timeframe was for 1+m shares at $2525. My trade was executed from Schwab
$25.25
Then as usual, Merrill will be leading the back of the pack. I was watching a lot of the trades on the Finra site and they seemed small, relatively speaking…500-15K, but saw another one this afternoon for 1mm+. Looks like it was trading yesterday.