We are still awaiting pricing on a number of previously announced new issues.
Insurance/annuity company American Equity Investment Life Holding Co (AEL) announced a new issue on Tuesday the 12th. This will be a fixed-rate reset preferred–non cumulative when it comes.
Global Ship Lease (GSL) announced a new baby bond yesterday. This will be a senior unsecured note with a maturity date in 2024–the company has indicated pricing in the 8% area.
Priority Income Fund (nontraded) filed a registration statement a couple of weeks ago indicating a potential new term preferred would be coming. Typically Priority announces these and then it takes 3-4 weeks before we see anything firm on an actual sale.
Given that they have 5 issues outstanding whether they sell another new issue is of little consequence to me–I have a little taste of the PRIF-D 7% issue already.
We will post as soon as further info becomes available.
GSL new bond officially 8%, not bad.
Got it Ken–looks interesting. I need to do a little DD then a small position is possible.
AEL resets to 5yr CMT + 432.2bps from and including 12/1/2024
Resetting every 5 years thereafter
Nice reset. At 5.95%, I am in
Thanks Jerry
The OTC symbol for AEL preferred A is AQYVL. It is on schwab but not tradeable yet
Here is the pricing term sheet for AEL issue. It conforms what Jerry has posted
5.95% fixed for 5 years. Resets after 5 years at the 5 year TBILL + 4.322%
https://sec.report/Document/0001104659-19-064356/
Steve looks like their preferred shelf rating is bb by AM Best. The would be 5th on a 9 point scale or “fair ability” to pay if I got this correct.
https://www.businesswire.com/news/home/20190620005427/en/Affirms-Credit-Ratings-American-Equity-Investment-Life
So AM Best rates this bb, and rates Amtrust debt bb+, and you get 9% from it…Hmmm….
A rather different business and level of risk from Amtrust. With that said, I have no been crazy about the annuity business. So, the question is whether to buy 1/4, 1/2, 3/4 or full position and how long to hold it. This is going in my tactical “bucket” not my long term holdings bucket. I actually have no insurance companies in my long term holding bucket. Plus, I have enough fixed rate, 5 year resets issues from Canada. Will see what the market reaction to this is. At that end of the day this is mid-range Junk as BB indicates. Aside from the Gladstone Commerical, this will be my lowest-rated holding
AEL indicating ~ 5.95 area.. Got nada on GSL & PRIF…
anything for AEL on reset rate spread in 5 years?
Also Banccorp South Bank (BXS/PRA) as per today’s reader alert from mcg.
Gary just posted in reader alert. Symbol is BCSBP. Coupon is 5.5%. mcg reporting BA1 credit rating
https://www.prnewswire.com/news-releases/bancorpsouth-prices-300-million-subordinated-notes-and-150-million-series-a-preferred-stock-offerings-300957964.html