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US Bancorp to Sell New Preferred Stock

US Bancorp (USB) will be selling a new preferred stock issue.

This highly rated bank will likely garner a A3 from Moody’s and BBB from Standard and Poor’s which is where there current issues outstanding are rated.

You can see the current issues outstanding here. The company has a 5.15% issue which is now redeemable (USB-O) which will likely be redeemed with the proceeds from the new issue–shares today in the ‘O’ are taking a shellacking–down 3-4%.

Yield talk is in the 4% area–plus or minus an 1/8% (more likely minus 1/8%)

The preliminary prospectus can be read here.

mcg was right on this one.

11 thoughts on “US Bancorp to Sell New Preferred Stock”

  1. They left no meat on the bone with this. USB-H/A trade at essentially the same yield but with a floor rate and at least the possibility of the rate going higher.

    Looking at all 8 USB issues (includes 2 institutional issues) there is nothing that I would buy and hold.

    I would rather buy the common or sell puts on the common.

    Symbol is UBKPL. I am seeing trading in the 24.80 range.

  2. I bought this one in March along with JPM-G and am sad to see them go. I was loathed to buy the lower rated WFC-Z(4.75%) in last winter but I guess I’m lucky to have even that.

  3. Common is 4.3%

    in general, I have a lot switched to Common shares (deep value shares), and I am selling call options (for the 1st time in my life) to generate yields that are above 7%. Cherry-picked some preferred.

      1. Looks like wait list orders were filled.
        And it looks like the demand was good for this one.

  4. The Use of Proceeds in the 424 is the usual hazy one but suggests redemption of the “H” Series, which trades as USB-O. I would take it as a given. $15 million went bye-bye today for USB-O holders.

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