Pennsylvania banking company Tristate Capital (NASDAQ:TSC) has priced their new issue of fixed-to-floating rate preferred with an initial coupon of 6.75%.
TSC primarily serves the middle market commercial lending area as well as private banking for wealthy individuals.
The coupon will be fixed until 4/1/2023 at which time it will be begin to float at the normal 3 month libor plus a spread of 398.5 basis points (3.985%).
When we first saw the coupon we thought this issue might be worth digging into further–but when we saw the 3.985% spread it was a “deal killer”. For a junk rated non cumulative issue this is totally inadequate (at least for us).
We suspect the issue will begin trading on the OTC Grey market next week, but the ticker has not been announced.