Stifel Financial Corp Prices Fixed Rate Preferred

Stifel Financial (NYSE:SF) has priced their new preferred stock with a coupon of 6.25%. The permanent ticker will be SF-B when it moves from the OTC market to the NYSE. Shares are rated BB- by S&P–non investment grade.

The terms are normal-quarterly payments, qualified dividends, non cumulative and a early redemption option available to the issuer starting 3/15/2024. They will be selling 6 million shares with over allotment shares available of 900,000 shares.

The pricing term sheet is here.

As mentioned earlier the issue will trade tomorrow (depending on the brokerage firm you use) under the temporary OTC Grey Market ticker of SFEIP.

8 thoughts on “Stifel Financial Corp Prices Fixed Rate Preferred”

  1. Thanks, I couldn’t find any either unless you wanted to pay over par and risk them being called.
    I think you were the one that posted you bought RZA. I followed and it has done very well.

    1. I owned both RZA and RZB. Brought them during the sell-off. My good to cancel orders on RZB were triggered last week. Never received a dividend payment. 10.8% capital gain on 5.75% coupon which is almost 2 years of dividend payments. Same may soon be true on RZA – 50% of my position will trigger $0.07 cents from now at $27.33. Yes – very happy with RZA and RZB.

      As observed by many, this market has gotten very expensive. I am looking for good issues to buy like everybody. Finding none, so I will simply keep money in PSK (ETF) and money market funds. Add the 2.4% money market rate to the 10.8% profit it is 13.2% gain a year from now.

      This year I am maintaining strict discipline, when the market takes me out, it takes my out at my desired profit margin.

    1. I tend to agree, but what investment grade preferreds have you found that pay over 6% without a short call at a premium.

        1. Gridbird, Might you share the preferred stock screener you utilize? Is it something you would recommend to others? Thank you so much.

          1. Wanda, here is one I use every great long while from Fidelity.
            One can put in various criteria and it will spit out the ones that fit it. I have not really found a perfect one. Of course after you run your screen, then you need to verify the ratings preferably with original source material such as Moodys or SEC filings from company, and then peruse prospectus to make sure call dates and other key info is correct.
            Some things I cant control, but understanding credit quality, the company itself, and terms of prospectus I can. Personally, I dont rely on secondary sources for my purchases. And part of that was learned from necessity I guess. As out of my 17 preferreds only 3 (SCE-L, SCE-C, and HE-U) trade on the regular exchange, the others are at various OTC levels.
            Tims lists appear to be very robust and very helpful for the “mainstream preferreds”. They might not be in screener format but very thorugh and robust. One can always dig further after taking note of issues from his nice various lists he has that are of personal interest.

            1. Gridbird, Thank you very, very much. I will soon reach retirement and am trying to educate myself on fixed incomes. I have used a financial professional and have come to realize Buffet is correct that Index funds beat professionals every time. Your kindness and willingness to share your knowledge is appreciated.

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