Wintrust Financial Sells a Fixed Rate Reset Preferred

One of the 1st new issues out of the gate in the last month is a Fixed Rate Reset Issue from Wintrust Financial Corp (WTFC).

NOTE that this issue will trade immediately under the OTC Grey Market ticker of WTFNL.

The community banker will sell a fairly large issue of 10,000,000 shares (with 1.5 million for over allotment) of new preferred with an initial coupon of 6.875%.

The coupon will reset in about 5 years to a rate of the 5 year treasury, plus a spread of 6.507%. Thereafter, resetting at a new rate every 5 years.

Of course the issue will be non-cumulative. The issue will be rated BB by Fitch, a bit shy of investment grade, while Dun&Bradstreet has a rating of BBB.

The preliminary prospectus can be read here.

The pricing term sheet can be read here.

Gary, SteveA and Martin had this one late yesterday.

15 thoughts on “Wintrust Financial Sells a Fixed Rate Reset Preferred”

    1. I did the same, a 25% position in Wintrust. It is now tradeable on Schwab.

      Earlier I brought a 50% position in OceanFinancial.

      I still don’t accept that we are not going to correct again. On a significant drop, I am willing to go to full position as the market begins to recover. If we don’t get another correction, so be it.

    1. And the second rating appears to be BBB(low) which translates from Canadian to BBB- in American.

      1. DBRS operates beyond Canada and has for many years, just not so much in the U.S. Morningstar bought DBRS a few months back and is using the brand as a springboard to go toe-to-toe with the traditional U.S. big boys.

        I expect to see them rating U.S. issues more frequently.

  1. Haven’t bought a new one in a couple months. Maybe I’ll buy some just to stay in the game.

      1. What scares me is this is Chicago and the other one is New York. Where we could see the most bankruptcies and financial pain.

        1. Having been involved with banking in Chicago as a former bank director, I can tell
          you that Wintrust is a well respected company with a solid reputation and financials.

          1. Thanks for the local input. It helps, at least for now. No matter how respected they may struggle if their customers can’t survive.

        2. New York housing / commercial real-estate I understand, but why Chicago?

          If Chicago then why not other big metros like Miami, Orlando (no tourists), Atlanta and mid-western states with large unemployment & Houston & Oily south?

          1. Didn’t mean to get into city wars. I keep hearing that Chicago may be one of the first economies to implode. Trying to invest without any personal bias.

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