Spire Inc. Prices Preferred Issue

Natural gas utility Spire Inc. (NYSE:SR) has priced a new issue of perpetual preferred stock.

Spire serves 1.7 million natural gas customers through the states of Missouri, Mississippi and Alabama.

The new issue of 10 million shares has been priced at 5.90% and has a BBB rating from Standard and Poors (investment grade) and Ba1 from Moodys.

The issue will have the normal early redemption period starting 8/15/2024.

Dividends are cumulative and should be qualified for preferential tax treatment.

The issue will trade immediately on the OTC Grey market under the temporary ticker SIPRY.

The pricing term sheet can be seen here.

The preliminary prospectus is here.

51 thoughts on “Spire Inc. Prices Preferred Issue”

    1. If they were smart, they should start issuing at 5.0%. There is a ton of cash sitting on the sidelines and these new issues are being scooped up and fast.

  1. notice it’s pushing 25.80 near close. been working and couldn’t follow, will see what happens over next couple of days. good for everyone who got in this morning. sometimes you just have to let them go , , , D

  2. I’m a little suspicious on the trading on this issue. 10 million shares right ? I don’t know what the volume was yesterday but this morning only about half a million have traded hands. The price has moved up quickly to $25.63 which seems rather “stout” for a 5.9% par issue, even for an investment grade one such as this. Maybe they are being dribbled out slowly to extract more from us retail investors. Wondering though if that quoted volume on FIDO excludes institutional buyers getting in through the back door.

    1. Retired, I read a million shares passed through back door yesterday. Many also get them given to them at IPO price of $25. You also have preferred funds and institutions gobbling them up on the side also. So its really hard to tell how much the retailer is getting squeezed on a hold back. Its possible though, but we know we arent going to get the best price. But remember DUK-A issued about 2 months ago. A par 5.75% ute preferred. The exact same thing transpired there as is happening with Spire now. You couldnt get them at par, and it quickly bolted out of the gate. And look at it now, sitting at $26.40.

      1. I suppose Grid. I want some of these but being greedy, I don’t want to pay to going price. I’ve got two buy orders in: one at 25.55 and another at 25.25. It might be that I just have to pass on this one. I’ll be darned if I’m going to pay up! It’s my way or the highway! I have standards!

        1. The 25.55 just filled! Maybe my standards aren’t so high after all ;). I’ve still got the 25.25 out there.

          1. Retired, as much as it pains me to say it, in todays pricing and income chase that isnt a bad entry point for you. We all might be guilty of thinking about the 70s, early 80s, and late 90s.
            10 year is around 2.40%….Look at some of these par yield issues that were issued in decades gone by when 10 year was of similar yield.
            UEPEN, IPWLO, WELPP, and CNLHN….It might make you feel better. It can get worse, lol.

          2. Retired, If it makes you feel any better, your 25.55 executed while my limit 25.59 is collecting dust at TDAM. Some brokerages appear to have better access than others.

            1. Ok then Alpha 8…I’m feeling better already. I upped my second order to $25.55, hoping it comes down a little as the closing bell nears. If not…there’s always tomorrow. Still a lot of shares to be placed I’m guessing.

    2. On their is stuff going on for sure. In middle of the day, it dropped to 25.25 and popped right back up. I smiled because I had a price of 25.45 entered. 5 minutes earlier. Nope, o did not get triggered. Yeah I know OTC is wild west. Maybe I sure hire the magifient 7 and have Yule Brunner exact some justice

      1. I would suggest Chuck Norris instead. There’s got to be a Chuck Norris saying out there for this situation.

  3. 10:08 am Schwab still not accepting trades. That’s okay. We will see if the price settles down tomorrow or the next day

      1. I saw. If it stays here, I will wait and pass if necessary. 2.6% premium over par is not something I am interested in.

    1. At this point Steve I’m going to wait a couple of days, as Tim pointed out it’s a pretty large issue at 10M shares. Maybe the excitement will settle down a little.

      1. Same here. I put a bid at $24.50 and it may never fill but I’ve got several similar in the 5.6% yield range and BBB. Took today to sell some more December spoils – EPR-G and NLY-G and plan on waiting for that fat pitch.

  4. Spire is a well respected ute. Despite similar quality as DUK-A it has a slightly higher par yield… And we know where DUK-A is at now price wise. With no access to IPO price, I took my medicine like a good boy and paid $25.50 for 1000 shares.

  5. Retired, Thank you – accessing via your watchlist door worked like a charm though as you know direct quote turns up nothing – so odd. TD shows 25.32×25.50, OTC shows same but only for 1×1. Hoping the 10M share push will give us some decent front end pricing.

  6. Folks, don’t feel bad. I contacted TDAmeritrade with all the available information as they don’t have it listed yet either. The IPO’s start trading so quickly that the brokerage firms cannot list the symbols on an immediate basis. It is frustrating because the share price is already 30-50 cents above par as noted on the ‘pink’ sheets, but when an IPO is filed and within a day trading starts, maybe a change is called for. Most of you know better than I do.

    1. Bummer Howard. I guess I wont back up the truck now. Thanks for the bad news!

      1. For TD: Enter it, SPIRY, directly on the snap ticket bottom of the screen. Don’t look for a quote or link. Should indicate Bid.Ask also. JA

        1. Try that…looking in from Bethel Woods up here in NY site of Woodstock. Nice thing about portfolios like these is to be able to take off and really not worry too much. Was surprised to see the big down and only be down .1 % over all combined portfolios the other day, A retirement dream in fact and nice to experience.

          1. Back at you Joel from Kauai. We spent last week in Maui and can honestly say have not looked much at existing holdings – just the adds. Market down 700? Yawn. BTW – if you’re in Bethel – I grew up in Saugerties, 12 miles outside of Woodstock. To this day, still has an all-volunteer fire department. Amazing little town. Oops, gtg, happy hour just started here. Only weirdo at the pool with a laptop. lol. If you have the time, Hunter Mountain this time of year is worth the drive from Bethel.

  7. Grid, Spire is in your neck of the woods. Do you have any comment on this company, and your opinion about buying this new SIPRY Preferred Series?

    1. Inspbudget, I write them a check every month. Its a damn shame I am a peon pensioner, because I would buy an assload. Come to think of it, I may have you float me a loan so I can buy more…Will you let me pay it off in installments?

      1. Grid, So if I buy enough of the issue, you’ll theoretically be paying me your monthly utility bill? lol.

        1. Alpha, In a perfect world, I would tell them just to deduct my monthly gas bill out of the dividends.

      2. Grid, good to know you think so highly of them that you would pay them money, LOL.
        Guess with folks like you providing for their well-being, we should all consider buying assloads for ourselves.
        The symbol is not recognized at Schwab today.

        1. try the full website not the mobile app. It is on Schwab. $0.00 is last price. Bid is $25.32 Ask is $0.00 volume is 1,724,450

        1. Steve, I called Schwab ~5:30pm CSDT and as usual they had no info on SIPRY at all, suggested a call back tomorrow to the fixed income desk. I doubt they will have any info tomorrow either, they can be really slow an new issues I’ve found.

          1. mikeo–it is 10 million shares (big issue) so I am thinking it will take a few days to digest before we hopefully get a move higher.

          2. Neither fidelity or etrade have the symbol available. It is showing on schwab stock quote $0.00 price and 1.7m shares traded. Could not enter trade however

            1. Showing on Fidelity now with $0.00 price quote but at least it’s showing and I was able to add it to a watch list. This is promising for placing an order tomorrow.

            2. According to Fidelity, the first trade was 25.25, traded as high as 25.42, as low as 24.90, and the last trade was 24.98

                1. Logged into my account. Added the symbol Tim specified to an existing watchlist (500 shares) and it accepted it but listed the price as N/A. It normally won’t allow insertion of a non tradable security so that tells me it’s available…just not available for placing a trade for tomorrow after the market close today. Should be trading on FIDO tomorrow.

                2. Alpha – on Active Trader Pro, go to the tab that allows you to see all trades for any symbol. Shows each trade.

                  1. Thank you Martin, Went there and it worked as you said. I keep telling myself I need to get used to using ATP. I get a bit lazy using the old page.

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