Preferred Stock Investing-The Good , The Bad and The In Between 2021

[Mulligan]

Quote:

Originally Posted by Weathering I’m here to ask you all’s opinion on Triton preferred shares. I recently purchased a small amount of TRTN preferred C at $23/share. It’s fixed yield equates to 8% at $23/share and it seems like Brookfield Infrastructure (BIP) will call this preferred in late 2024 after the Triton acquisition by BIP is complete and the first call date for this preferred arrives. Here is why I am asking for your input: the share price of this preferred went down when it was announced Triton was being acquired by Brookfield Infrastructure. That price action was exactly the opposite of what I expected. Brookfield has a higher credit rating, meaning Triton’s preferred shares should become investment grade (BBB-) after the acquisition closes. Why would the preferred shares go down because of Triton being acquired by BIP?

This is a commonly misunderstood situation. I havent specifically looked at this situation, but with most acquisitions, Triton will not become Brookfield. It will be a subsidiary of Brookfield and remain Triton’s (or whatever subsidiary name they give it). Brookfield will not pay the dividend, the subsidiary will. The subsidiary could be stronger or weaker than parent. Probably the biggest immediate concern though specifically here is they keep it outstanding and delist it. Wont provide financials of the new subsidiary and the preferred then goes to the expert market where you can only sell it. Typically at a significant disadvantage to the seller since only a few specialized people can buy…And on their terms.
Im not saying this will happen but it has frequently occurred with several preferreds from companies buying them out. And the market takes notice of these things.

[bobandsherry]

Interesting.... Wells Fargo & Company Announces Full Redemption of its Series Q Preferred Stock and Related Depositary Shares --- with less than 40 days notice as stated in the prospectus (page S-19).

https://newsroom.wf.com/English/news...s/default.aspx

[Affinity4Investing]

Quote:

Originally Posted by bobandsherry Interesting.... Wells Fargo & Company Announces Full Redemption of its Series Q Preferred Stock and Related Depositary Shares --- with less than 40 days notice as stated in the prospectus (page S-19). https://newsroom.wf.com/English/news...s/default.aspx

Did you notice that they only have to notify themselves, in effect? Public shareholders are not the depositary and thus, require no notification. Wells Fargo and Company (the issuer) is required to notify Wells Fargo Bank NA (the depositary). No external communication beyond that is required by the prospectus - unless I don't understand what is stated in the prospectus.

[Texas Proud]

Quote:

Originally Posted by Affinity4Investing Did you notice that they only have to notify themselves, in effect? Public shareholders are not the depositary and thus, require no notification. Wells Fargo and Company (the issuer) is required to notify Wells Fargo Bank NA (the depositary). No external communication beyond that is required by the prospectus - unless I don't understand what is stated in the prospectus.

Not sure who the various parties are but in simple terms that company would notify the trustee (depository?) about the redemption...


The trustee would then notify Cede & Co (usually the registered owner) and then Cede & Co would notify all holders (brokers)... and lastly the brokers would notify all their customers...


Now, I have had some calls at VG and did NOT get notice for some reason... just that the shares were gone or converted... I guess another reason to not like VG...

[bobandsherry]

Quote:

Originally Posted by Affinity4Investing Did you notice that they only have to notify themselves, in effect? Public shareholders are not the depositary and thus, require no notification. Wells Fargo and Company (the issuer) is required to notify Wells Fargo Bank NA (the depositary). No external communication beyond that is required by the prospectus - unless I don't understand what is stated in the prospectus.

I'd have to reread the relevant section, but regardless of who they have to notify, the press release stated "today announced that on Sept. 15, 2023". So today seems to be the key to notification? Maybe, maybe not?

[Texas Proud]

Quote:

Originally Posted by bobandsherry I'd have to reread the relevant section, but regardless of who they have to notify, the press release stated "today announced that on Sept. 15, 2023". So today seems to be the key to notification? Maybe, maybe not?

The key is when the trustee was notified... it might have been earlier...


But an interesting question that should be answered...

[Affinity4Investing]

Quote:

Originally Posted by Texas Proud The key is when the trustee was notified... it might have been earlier... But an interesting question that should be answered...

Just trying to add some clarity here...


I can't find where the confusion lies. WFC is only obligated to notify the depositary as well as receive permission to redeem the 69K of shares, from the Federal Reserve Board. All conditions had to have been satisfied for redemption.


The beef seems to be with end-of-the-line investors who believe they should be notified at the same time as the depositary. That would be nice but it's not a requirement via the prospectus.



What WFC-Q investors appear to be failing to realize is that they don't own the "Series Q Preferred Shares". The depositary does. The depositary holds those and then issues these to us little people "Series Q Depositary Shares". See the difference?



Please refer to the redemption announcement as well as the prospectus and it should make more sense if you see the nuance: "Wells Fargo & Company (NYSE: WFC) today announced that on Sept. 15, 2023, it will redeem all 69,000 shares (the “Redeemed Series Q Preferred Shares”) of its 5.85% Fixed-to-Floating Rate Non-Cumulative Perpetual Class A Preferred Stock, Series Q (the “Series Q Preferred Stock”). The redemption of the Redeemed Series Q Preferred Shares will trigger the redemption of the 69,000,000 shares of the related depositary shares (the “Redeemed Series Q Depositary Shares”), each representing a 1/1,000 interest in a share of Series Q Preferred Stock (the “Series Q Depositary Shares”) (NYSE: WFC.PRQ). The redemption price will be equal to $25,000.00 per Redeemed Series Q Preferred Share and $25.00 per Redeemed Series Q Depositary Share. After giving effect to the redemption, no shares of the Series Q Preferred Stock or the Series Q Depositary Shares will remain outstanding."

[Texas Proud]

Well, now I get to wait to see what I really own...


Back in 2019 I bought PYS, RR Donnelley baby bond based off an outstanding issue... well, in late 2022 it was closed out for some reason (which I never heard about till after it was converted)...


The thing is I got '24,675' as my quantity... so I was looking at it and it is very low rated but selling over 100... so decided to sell... sold 24 bonds with a good profit...



But I now own 2/3 rds of a bond Guess I will hold on till it matures... wonder who has the rest?!

[Affinity4Investing]

New offering, fyi:



https://www.sec.gov/Archives/edgar/d...6583d424b5.htm

Apollo Global Management, Inc.

25,000,000 Shares 6.75% Series A Mandatory Convertible Preferred Stock

[Texas Proud]

Quote:

Originally Posted by Affinity4Investing New offering, fyi: https://www.sec.gov/Archives/edgar/d...6583d424b5.htm Apollo Global Management, Inc. 25,000,000 Shares 6.75% Series A Mandatory Convertible Preferred Stock

Not interested in convertible shares... especially so soon...


The Mandatory Conversion Date is expected to be July 31, 2026

[Texas Proud]

Ohhh, wanted to complain a bit about brokers...


All seem to put the preferred shares either in stocks or other investments... I want them to be in an income category as I am buying them for their income... to me they are considered a bond...


I cannot find any way to change the category on them to show up where I want...

[Affinity4Investing]

Offering/Redemption notices


Apollo to Offer Fixed-Rate Resettable Junior Subordinated Notes

NEW YORK, Aug. 16, 2023 (GLOBE NEWSWIRE) -- Apollo Global Management, Inc. (NYSE: APO) (the “Issuer,” and together with its consolidated subsidiaries, “Apollo”) today announced that it has commenced an offering of its Fixed-Rate Resettable Junior Subordinated Notes (the “notes”), subject to market and other conditions (the “Offering”). The notes will be fully and unconditionally guaranteed by Apollo Asset Management, Inc. (“AAM”), Apollo Principal Holdings I, L.P., Apollo Principal Holdings II, L.P., Apollo Principal Holdings III, L.P., Apollo Principal Holdings IV, L.P., Apollo Principal Holdings V, L.P., Apollo Principal Holdings VI, L.P., Apollo Principal Holdings VII, L.P., Apollo Principal Holdings VIII, L.P., Apollo Principal Holdings IX, L.P., Apollo Principal Holdings X, L.P., Apollo Principal Holdings XII, L.P., AMH Holdings (Cayman), L.P. and Apollo Management Holdings, L.P. Apollo expects to grant the underwriters a 30-day option to purchase additional notes solely to cover over-allotments, if any.

Apollo intends to use the proceeds from the Offering, together with cash on hand, to redeem in full AAM’s outstanding shares of 6.375% Series A Preferred Stock and 6.375% Series B Preferred Stock (collectively, the “AAM Preferred Stock”) with an aggregate liquidation value of $575.0 million and pay related fees and expenses in connection with the Offering and redemption of the AAM Preferred Stock. Following the redemption of the AAM Preferred Stock, AAM intends to terminate its separate filings under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

[tizod]

Dang we are all getting quiet...is there no great thing to pick right now? I just got some LHX, seems like my buy for COF.PR.I will hit soon, and I need some other good ideas as CD's mature. Where the conversations!!

[Texas Proud]

Quote:

Originally Posted by tizod Dang we are all getting quiet...is there no great thing to pick right now? I just got some LHX, seems like my buy for COF.PR.I will hit soon, and I need some other good ideas as CD's mature. Where the conversations!!

I stopped trading awhile back and now just hold... filled out my AA for fixed income so do not need to do anything unless there is a call.. or maturity as I did get some bonds...

[Sunset]

I have been buying Treasuries, as they are secure (as can be) and pay out 5->5.5% risk free. ...

[Mulligan]

I have only ever slightly began reentering fixed perpetuals. Im mostly only interested the old subsidiary ute ones that creep over 6%. Did recently buy some BBB rated fixed Canadian Utilities at almost 7% and around $12 USD. Also some Fortis reset preferreds at 8.2% that just reset. Have live floaters that I keep running with. With no guarantees of rates peaking these are still the safer ones nearer term.
That being said I still have more money in CDs, IBonds, and Treasuries than I do those. Still waiting and patient.
I do small ball trade perpetuals but they arent long term holds. Just catching market volume imbalances here and there for tough steak meat dinners.

[bobandsherry]

Quote:

Originally Posted by tizod Dang we are all getting quiet...is there no great thing to pick right now? I just got some LHX, seems like my buy for COF.PR.I will hit soon, and I need some other good ideas as CD's mature. Where the conversations!!

It's been a game of seeing some shiny babbles and picking up a few, holding an assortment of preferred now, mostly floating.... AGNCN, ALL-B, AQNA, ATLCL, CSWCZ, CUBI-F, FTRSF, GLADZ, GLOP-B, LBRDP, MS-A, NIMC, NLY-G, NS-A, NS-B, NSS, PACWP, PSEC-A, SOHOB, USB-A, WFC-L.

I'm looking that short term rates remain low, but now looking at what beaten down issues with relatively low fixed coupon to move money to when rates move down to pick up some capital gains.

[tizod]

My urstadt biddle is now regcp. Did anyone track this? I did some homework when announced, didn't come to any decision, and forgot about it till it cleared! It seems it tracked through the same? Any comments to help - I'm away for a bit and will likely not look this up for awhile.

[Winemaker]

Quote:

Originally Posted by tizod My urstadt biddle is now regcp. Did anyone track this? I did some homework when announced, didn't come to any decision, and forgot about it till it cleared! It seems it tracked through the same? Any comments to help - I'm away for a bit and will likely not look this up for awhile.

I'm holding my REGCP after the merger. i have held the Urstsadt for 3 years, and will contiue to hold for now.

[perrytime]

NYCB-U,
Appears from last earnings NYCB is doing well. NYCB-U price has been on decline for some reason. The description on quantumonline is confusing to me, seems more than simple preferred, and that concerns me. the 8% div seems safe from suspension. $50 par, trading below 35. Anyone have thoughts?