Terms

Series

Fixed Rate Noncumulative Perpetual Preferred Stock, Series J

Liquidation Preference

$25.00

Coupon Rate

7.375%

Rate Type

Fixed

Annual Dividend

$1.84

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

July 15, 2028

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Other Non-Equity Claims, All Liabilities Of Subsidiaries; Pari Passu With: Fixed Rate Noncumulative Perpetual Preferred Stock, Series H, Fixed Rate Noncumulative Perpetual Preferred Stock, Series I, Other Outstanding Preferred Stock (Dividend Parity Stock); Senior To: Common Stock, All Other Junior Stock

Regulatory (Basel III) Call

Yes

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Shares Offered

24,000,000

Prospectus Summary

The Allstate Corporation (NYSE: ALL) is offering 24,000,000 depositary shares, each representing a 1/1,000th interest in a share of its Series J Fixed Rate Noncumulative Perpetual Preferred Stock, with a liquidation preference of $25.00 per depositary share and a fixed annual coupon of 7.375% ($1.84375 per depositary share annually, or approximately $0.461 per quarter). The first optional redemption date at par is July 15, 2028. Critically, dividends are non-cumulative — if the board does not declare a dividend for any quarter, that dividend is permanently forfeited and holders have no claim to it in future periods. As a holding company issuer, the Series J preferred sits structurally junior to all liabilities of Allstate's operating subsidiaries (totaling approximately $72.3 billion as of March 31, 2023), which must satisfy policyholder and creditor claims before any funds flow up to the holding company. At the holding company level, the preferred ranks junior to all existing and future indebtedness ($8.5 billion as of March 31, 2023) and pari passu with the outstanding Series H and Series I preferred stock. It ranks senior to common stock. Allstate may redeem the preferred early (whole, not in part) within 90 days of a 'regulatory capital event' at $25.00 per depositary share — relevant if Allstate becomes subject to capital regulation and the preferred loses its qualifying capital treatment. At the $25.00 offering price, the effective yield is 7.375%. Dividends are paid quarterly on January 15, April 15, July 15, and October 15 (commencing October 15, 2023), with a record date set as the 15th calendar day before each payment date. For non-corporate U.S. holders meeting applicable holding period requirements, dividends qualify for the preferential 15%/20% qualified dividend income (QDI) rate; corporate holders may be eligible for the dividends-received deduction (DRD), subject to sufficient earnings and profits. Dividend payments can be interrupted if Allstate defers interest on its subordinated debt securities, or if full dividends on the preceding period have not been paid, blocking junior stock distributions.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Allstate has not paid full dividends on the Preferred Stock for the preceding period, it cannot pay dividends on or repurchase common stock or other junior stock. Additionally, if Allstate is deferring interest on its subordinated debt securities, it is prohibited from paying dividends on the Preferred Stock.

Other Preferreds from The Allstate Corporation

Div Score Breakdown

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