is callable for 1st time in August. The stated dividend exceeds 8%. There are 6.2 million shares outstanding. It will cost the corp. $155 million to redeem at the $25 price. Those shares are currently trading south of $24 and have been trending down in price since I bought them about a 5 weeks ago. This tells me they will not be redeemed. Anyone?
I own a bunch of these preferreds and really don't know if they intend to redeem the preferred. The preferred market is very depressed right now(due to an abundant new supply of preferreds issued by banks) so it wouldn't be reasonable that they would redeem and then replace with another preferred issue. They could redeem the preferreds by issuing common and save some money but that would be dilutive. If I were to guess, it would be that they won't redeem.