Incapital launches Leopards program for preferreds access; Allstate is program's first issuer

By Jennifer Chiou and Stephanie N. Rotondo

New York and Phoenix, Dec. 2 - Incapital LLC announced the launch of Incapital Leopards, which is designed to provide retail investors increased access to preferred stock and related debt securities.

According to a news release, the Incapital Leopards security offerings are designed to typically have a one-week marketing period, similar to traditional retail notes, and have the flexibility to reopen multiple times to allow issuers to focus on the retail segment.

The company noted that the program is a product extension of its existing continuously offered notes program for senior unsecured debt. The program is also "to the best of our knowledge... a first of its type," a source from Incapital said.

The first issuer under the program is Allstate Corp., which is planning an offering of 6.625% series D noncumulative perpetual preferred stock. Additional issuers are expected to join in during the first half of 2014, according to a source at Incapital.

"Weekly volumes are not knowable at this time, since it's a new program," the source said in an e-mail to Prospect News. "Early indications on volumes for the first Allstate corporate preferred stock offering are very positive. We'll have volumes for the first week's offering this time next week."

The Leopards securities may have a 30- to 120-day listing period from the original settlement to accommodate the multiple reopening feature, subject to applicable NYSE listing requirements, the release stated. According to the company's website, reopenings will be offered at par plus accrued dividends or interest.

Otherwise, structure and pricing is set prior to announcing the offering.

"The Leopards program is a significant step in our ongoing efforts to build a more favorable investment climate for individual investors," chief executive officer John Radtke said in the release.

"Through our broad distribution network, Incapital will serve as a conduit between its dealer clients and their retail customers interested in preferred stock and related hybrid/debt securities," managing director Chris O'Connor added in the release.

Incapital is an underwriter and distributor based in Boca Raton and Chicago.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.