Terms

Series

5.100% Fixed-to-Floating Rate Subordinated Debentures due 2053

Coupon Rate

5.1%

Rate Type

Fixed To Floating

Payment Frequency

Quarterly

Cumulative

Yes

Perpetual

No

Convertible

No

Callable

Yes

First Call Date

January 15, 2023

First Call Price

$100.00

Mandatory Redemption Date

January 15, 2053

Capital Stack Ranking

Junior To: Senior Unsecured Debt, Secured Debt; Senior To: Common Equity, Preferred Equity

Regulatory (Basel III) Call

No

Tax Classification

Ordinary

Qualifies for QDI

No

Qualifies for DRD

No

Prospectus Summary

The Allstate Corporation is issuing $500 million of 5.100% Fixed-to-Floating Rate Subordinated Debentures due January 15, 2053. The debentures pay a fixed 5.100% annual rate quarterly through January 15, 2023, then switch to three-month LIBOR plus 3.165% quarterly thereafter. These are debt instruments, not equity, and interest is treated as cumulative in the sense that any deferred amounts accrue additional interest — though technically this is interest deferral rather than cumulative preferred dividends. The issuer may redeem at par on or after January 15, 2023, or earlier for tax or rating agency events. These debentures are unsecured, subordinated obligations of The Allstate Corporation, a holding company. They rank senior to any equity (common and preferred) but junior to all senior and secured debt obligations. As a holding company issuance, they are structurally subordinated to all liabilities of Allstate's insurance subsidiaries, meaning subsidiary creditors and policyholders have priority over debenture holders in a stress scenario. No regulatory capital call provision was identified; early redemption is limited to tax events or rating agency events prior to January 15, 2023. At par, the effective yield is 5.100% annually ($51 per $1,000 principal) through January 2023, then floating at three-month LIBOR plus 316.5 bps. Interest is paid quarterly on January 15, April 15, July 15, and October 15. Interest income is taxable as ordinary income to U.S. holders — it does not qualify for the preferential qualified dividend income rate or the dividends-received deduction. Interest payments may be deferred for up to five consecutive years; deferred amounts accrue additional interest at the prevailing rate, but no cross-default or dividend stopper on the issuer's equity distributions is described in the excerpted text.

Summarized from the SEC prospectus filing.

Distribution History

Floating Rate Terms

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

The issuer may defer interest payments for up to five consecutive years; no payment blocking of other securities is explicitly described for this subordinated debenture structure.

Other Preferreds from The Allstate Corporation

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 75 (Strong)