Stifel Financial to Sell Non Cumulative Preferred

Stifel Financial (SF) will be selling a new issue of fixed rate, non-cumulative preferred stock.

The issue will be redeemable beginning 6/15/2025 at $25 plus accrued dividends.

SF has 2 preferred issues outstanding currently as well as 1 baby bond–you can see them here.

The new issue will be rated BB- by Standard and Poors–3 notches BELOW investment grade.

The preliminary prospectus can be read here.

Thanks to mcg for noting this one an hour ago.

12 thoughts on “Stifel Financial to Sell Non Cumulative Preferred”

  1. Kapil; In the particular extremely low interest rate environment we find ourselves in Iam not going to worry about 7 years from now regarding the “MS+K”. I’ll gladly take the 5.85% coupon and run with it for the 7 years. As a matter of fact I did. I own over $325,000 of MS preferreds. On a completely side note I have a friend who recommended the new Wintrust Financial preferred. Iam a little gunshy of a 6.875% coupon in this environment. Do any of you guys own the new Wintrust preferred??? I don’t own it and most likely will take a pass on it.

    1. That sounds fine Chuck. I wasn’t implying that it is a bad investment, I was just letting you know what to expect after the call date, I own many fixed-to-floating preferreds but have been slowly taking profits in the ones with relatively low float spreads. The Enbridge preferreds that have low spreads over the 5 year treasury trade at a mid teens price and are a good example of the downside risk.
      I bought the new Wintrust preferreds and sold the old one. The post-call spread is excellent in my opinion. It is a decent bank but there is credit risk obviously. I also bought PRE-I today.

  2. Stifel is a good B/D and ranks something like 8th in country. Their preferreds have held up well compared to the markets over time. At this level its a 3 billion dollar market cap so tread lightly.

    Normally when these hit I look closely at the existing issues for relative comparison. But…..I never did drill down on this one.

  3. 3 notches below investment grade— I’ll take a very large raincheck. LOL I still think for some reason that we are a very long ways from getting thru this crisis. David Kostin from G S this morning on CNBC said the big banks collectively will have to set aside somewhere between $101 and $105 BILLION for loan losses. Are you familiar with the trickle down theory? The banks common stocks are acting horribly.

    1. Chuck,
      AAPL off to the same races again this morning, so back to JPM common at 4% divvy I went. Lots of cap appreciation potential if one is patient and you’re getting paid to wait. A 4% divvy isn’t all that bad when you consider it is QDI and when JPM begins issuing new preferred’s, you’ll be lucky to get them at 4% flat anyways…. So I think this is where the cap appreciation potential comes in handy. Not buying it above $89.xx, though. Just an FYI.

      Took a look at the MS+K you mentioned but even though it’s not until 2027 or so, I am having trouble pulling the trigger on anything that is FtF. But it’s definitely on my watchlist.

      1. Affinity; Yes, AAPL is off to the races again. Personally, I think its way over priced by atleast $20 to $30 a share. What is “FtF”??? Not sure of that abbreviation. I like your idea of JPM common. Regarding the “MS+K” with the issue not being callable for 7 years I can easily justify buying it at the range of $25 to as high as $25.65 or so. Somewhere down the road we’ll have to figure out a way to trade email address’s.

          1. Hello Affinity; I just sent you a message over on S.A. along with my email. Thank You for getting in touch with me. We seem to share many of the same ideas and philosophies. TAKE CARE MY FRIEND.

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