US Bancorp (USB) has announced they are selling a $1,000/share fixed rate reset preferred which no doubt with be at a low coupon.
Within the ‘use of proceeds’ section of the offering they have stated they will call all of their $25/share series F preferred shares–the USB-M 6.50% fixed to floating rate preferred which becomes redeemable on 1/15/2022. This issue would reset at 4.468% plus 3 month libor in January–which would be a good coupon for the company–but obviously they aren’t going to chance it–they will replace a good coupon with a great coupon (for the company–not us).
J noted this redemption in the Reader Initiated Alerts section this morning.
Well I don’t do 1000 pfrds as a general rule, sticking to $ 25 markets because pricing is more accurate. The 25’s are so much lower in yields I can’t figure out why a bank would go 1000 vs 25??
I’m forever belly aching about a jpm 6. 75 thousand dollar bond I bought. In five years I never made squat in price increase. Then JPM C came outta along and at 6 % I made a 27.50 handle…. While the 6.75 sat there?