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.