Container lessor Textainer Group Holdings (TGH) has priced the previously announced preferred issue.
The issue is a ‘reset’ issue. The initial coupon is 7% until 6/15/2026 after which the issue will reset at 6.134% plus the 5 year treasury.
The issue will reset every 5 years.
The pricing term sheet can be read here.
Win for the team ….
Textainer tmp ticker was reported here on 4-7 early morning and I bought in at 10:34 and 10:36 AM that day. Didn’t buy enough. Should have bought double what I did.
Today, you see the write up on SA:
https://seekingalpha.com/article/4418229-textainer-new-7-preferred-share-issue-is-attractive
Earliest you could act on the SA advice would be Monday the 11th. The 4 days matter. Thinking the issue may jump on Monday. This is where I wish I had bought more. Half to keep; half to flip.
Make that Monday the 12th.
Bob–wish I would have bought more also–but when they go up that is always the case.
There is little on new issues on SA that is really helpful–info is not timely. Last year I tried writing a small blurb on new issues and they wouldn’t publish it without a full blown company analysis which I have no ability to do timewise. My offer was for free–no payment from SA.
Fidelity just charged me $50.00 foreign security fee for this. Didn’t catch it before I hit buy.
The foreign transaction fee is because the temp ticker ends in “F”. It’s an SEC registered issue and will trade on the NYSE. Once it gets to the NYSE the $50 fee will disappear at all brokerages. Until then one might tell Fidelity that they should not “F” their customers with the fee.
In truth OTC should not be giving issues like this a foreign ticker. If it’s going to stay a foreign OTC issue forever that’s one thing. If it’s destined to trade on a US exchange it’s another.
Ricky, try calling them and requesting fee to be waived. If rep cannot, kindly ask to speak with rep’s supervisor. You probably did not notice the fee assuming zero-commission transactions. You would not be the first making this type of request.
Fidelity charges a $50 foreign transaction fee.
Ameritrade charges $6.95 pink sheet commission
Vanguard charges nothing.
IBKR won’t trade it.
schwab charges nothing – and actually had it set up to trade!
I am in for half position with a low ball bid for another half.
My sense is the issue is under-priced due to this being a new issuer of preferred and perhaps the prejudice that seems to attach to “foreign” issues.
Great deal near par. Will trade to $25.75 to $26.00 in the near term. Nice long non callable 7% fixed rate. Buy now while you can.
I dont know if it qualifies as a great deal credit wise, but the aerial big picture near term situation makes it a worthy risk for me. I jumped in this morning at $25.15.
Grid–got in for 25.18. Not likely to be sticking around long term though–just not my cup of tea so to speak.
Gridbird, I got in at $25.20. Definitely worth the risk in my opinion….especially for the short term. Already up to $25.28.
Christopher–hope you are right–and suspect you are.
Christopher, you wrote, “Nice long non callable….”
This issue is in fact callable. Per https://www.sec.gov/Archives/edgar/data/0001413159/000119312521108113/d138226dfwp.htm:
“The Issuer may, at its option, redeem the Series A Preference Shares … in whole or in part, from time to time on any dividend payment date on or after June 15, 2026, at a redemption price in cash equal to $25,000 per share of Series A Preference Shares (equivalent to $25.00 per Depositary Share)….”
I think the thought was not callable PRESENTLY but worth distinguishing.