Triton International Prices Preferred

Container lessor Triton International (NASDAQ:TRTN) has priced their newly announced preferred with a fixed rate of 8%–much lower than we thought it should go for from a risk/reward perspective. Of course we are almost always disappointed, but you can’t blame underwriters for pushing junk at this coupon when there is a never ending stream of folks chasing yield.

While the company is performing well now they carry over $7 billion in debt and the weight of this much debt gets very heavy in a recession.

The permanent ticker for this issue will be TRTN-B when it trades on the NASDAQ. The issue will trade on the OTC Grey market immediately under the temporary ticker TTONF.

The issue is rated B+ by S&P.

The company is selling 5 million shares and there are 750,000 more available for over allotment.

The pricing document for the new issue is here.

One thought on “Triton International Prices Preferred”

  1. Been an interesting calendar week with divs and limit sells hit for those wanting to capture div. Got sell limits hit on the last two non-QDIs in my taxable account. Finally gotten my accounts in a rational order. Have placed sell limits (with AONs, will see?) on other issues in all accounts that are bond rate sensitive if rates shoot down further. Who wants to reach up for ripe fruit? Just my plan. There is always a doubt about the need to replace cash with SOMETHING in the future, so have established a nice hi qual list of ‘step into at my price’. It’s nice to finally have time to spend on these matters. Retirement GOOOD! Am nearing a watch and wait mode like a tie game in the bottom of the eighth. May be waiting for a while as the ‘games’ have been going into extra innings alot lately. (PS Twins!)

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