TRTN Preferred C

With Brookfield’s aquiring, these go for 23.65 and pay 7 3/8% while waiting for early redemption or to 12/24 plus another 5+% at redemption. If Brookfield retires early, that works better, but even if not, seems like a good opportunity. Thoughts, please.

Two things added late: Brookfield intends to leave the preferreds outstanding - i.e. not redeem them. Also, the prices on their preferreds have tanked - series C now trading at 22.62, so the bump to par is now over 10%.


Hey, Vince,

I don’t really follow this stock, but it looks similar to what happened to ATCO preferreds last year, when it was announced that ATCO was being aqcuired. The market’s now decided that it needs yields between 8.2% and 9% on those TRTN preferreds.

As you can see for ATCO, the preferreds haven’t really fully recovered. But if that were a concern about ATCO’s ongoing ability/desire to pay the preferred dividends, it seems strange that the Series I trade about 1.5% below par, the Series D about 8% below, and the Series H about 11% below. At the same time, it doesn’t seem to be a question of yield, either, since the I and D have a coupon of 8% and 7.95%, while the H has a coupon of 7.875%. So I don’t know what’s really causing the disparity there.

I will point out that there is a Brookfield preferred hanging out there, acquired as part of a merger, it seems, that is not paying its dividend. Brookfield DTLA-P. That issue is now being suspended.

The TRTN preferreds may be worth watching, however. I just don’t have a lot of details on them.



Thanks, Jim, as always.


Updating: The preferred actually fell below $21 but later recovered to $23 and now sits at $22.75. I’m looking to sell at $23 or hold for the near 8% yield.