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Synchrony Financial Sells a New Fixed Rate Reset Preferred Issue

In my helter skelter week I am a day late posting this—but as always the folks in Reader Alerts picked up on it right away. Thanks to J, Jerrymac, If you Prefer, SteveA and mbg for being on top of the details.

The fixed rate reset issue priced at 8.25%—which will be fixed until 5/15/2029 at which point it will reset at the 5 year treasury plus a spread of 4.044%.

The ticker will be SYF-B. Issue is rated BB- by S&P and B+ from Fitch.

The pricing term sheet is here.

32 thoughts on “Synchrony Financial Sells a New Fixed Rate Reset Preferred Issue”

  1. SYF-B just paid its first dividend 5/15. Schwab has it as ‘Not Qualified’!

    If anyone here also owns it at another brokerage, how is that dividend reported?

  2. SYF-B now trading on TDA, $25.07 current price. Don’t think I’m a buyer of this though.

    1. Finally IBKR has them. I bought @24.90
      Second order at 24,85 didn’t get filled for some reason (24,85 was the low)

    1. watch out for that symbol change at schwab. They will usually do that symbol change too – but if you bought the issue while it was a “V”, they will usually credit back to your account the cash you paid for the “V” version for a day or two, then pull it back when they substitute in the “L” version. Often, you can’t sell the V version while it is in transition without calling and arguing with support to get a real broker on the phone.

      when they do that substitution “credit cash back:, it makes you think you have more available cash than you really do for those days. especially a problem in IRA-type accounts because they can’t have margin to buffer things. I speak from experience – having accidentally overspent accounts because schwab’s order tools will allow it in this weird situation.

  3. Bought Friday at 24.94 but only 200 shares. New issues haven’t popped lately so I played it cautiously.. Own some SYF-A after crashing in last years bank selloff. Innvestors still somewhat risk averse here.

  4. Hit 25.29 today, trading well. Might jump to 26 if nothing evenful happens. With cap one buying SYF competitor DFS and ally rallying….. looks OK!

  5. My system finally accepted syfpv after lunch.

    At 8.25 CY the issue may eventually settle out 25.75-26.0

    1. If you Prefer – in the last year I have not observed any benefit to being in early anyway–unlike the ‘olden’ days when rates were falling.

      1. While this one is not investment grade I think under par is a decent purchase. I have a feeling it will be above 25 in short order. Not by much mind you as a direct comparable might be MBINM. This is not another another ALL-J situation. But even with that said I just want a little bit. I do not have any plans to buy a large position.

      2. Compared to SYF-A?…which is down today, but CY ~7.67% as I calculate, so wouldn’t that imply that B will trade higher than par, esp. when various funds can purchase it after gray market?

        1. I hold a full position in the A and wouldn’t take the higher yield for the price discount in the A series. The B issue is a welcome sign that the company probably doesn’t have any serious delinquency problems, YET?

      3. Tim………Yes thats been true of most the deals. Not all but most. However for primaries there are many reasons it makes sense to get allocated on the new issue. AND with the very low number of deals coming thru last 6 months there is much pent up demand. This was 500mm, which institutional could google up in 5 minutes.

        It seems the big corp’s desks are easier to read then an 80 old widow trading ATT.

    2. You don’t need the CUSIP – temp symbol is SYFPV.

      Others have confirmed it’s tradeable at Fidelity. I think you might be able to buy it at Schwab if you call in and let them read you the disclaimer.

      1. That’s a valid system for a quote. But on some systems that doesn’t work for a trade

        1. It is definitely buyable at Fidelity via their website (but for whatever reason I could not initiate the trade thru their Active Trader Pro platform)

      2. I have been trying to buy at IBKR and they won’t let me.

        I cannot find the cusip either. Any thoughts?

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