Terms

Series

Fixed Rate Noncumulative Perpetual Preferred Stock, Series I

Liquidation Preference

$25.00

Coupon Rate

4.75%

Rate Type

Fixed

Annual Dividend

$1.19

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

January 15, 2025

First Call Price

$25.00

Redemption Notice Period

30 days

Capital Stack Ranking

Junior To: All Existing And Future Indebtedness And Other Non-Equity Claims; Pari Passu With: Fixed Rate Noncumulative Perpetual Preferred Stock, Series A, Fixed Rate Noncumulative Perpetual Preferred Stock, Series G, Fixed Rate Noncumulative Perpetual Preferred Stock, Series H, Any Future Preferred Stock Ranking On Parity; 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

12,000,000

Prospectus Summary

The Allstate Corporation is offering 12,000,000 depositary shares (NYSE: ALL PR I), each representing a 1/1,000th interest in a share of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series I, with a liquidation preference of $25 per depositary share and a fixed annual coupon of 4.750%, payable quarterly ($0.296875 per depositary share per quarter). The stock is non-cumulative, meaning that if Allstate's board does not declare a dividend for any quarter, that dividend is permanently forfeited — holders have no right to recover missed payments in future periods. The Series I Preferred ranks senior to Allstate's common stock and all junior equity, and pari passu with its existing Series A, G, and H preferred stocks. It is junior to all of Allstate's existing and future debt and other non-equity obligations. As a holding company issue, it is structurally subordinated to the claims of policyholders and creditors of Allstate's insurance subsidiaries. Notably, the preferred is callable at $25 (par) within 90 days of a 'regulatory capital event' — triggered if a change in law or regulation causes a material risk that the liquidation preference would lose its status as qualifying capital under any applicable group capital standard — giving the issuer a right to redeem before the standard first call date of January 15, 2025. A separate rating agency event call allows redemption at $25.50 per depositary share if a rating agency reduces or shortens the equity credit assigned to the preferred. At the $25 offering price, the Series I Preferred yields 4.750% annually. Dividends are paid quarterly on January 15, April 15, July 15, and October 15 (commencing January 15, 2020), with a record date set 15 calendar days before each payment date. Dividends are expected to qualify for the preferential QDI tax rate for individual holders and for the dividends-received deduction for corporate holders, subject to applicable holding period requirements. The dividend stopper prevents Allstate from paying dividends on or repurchasing common stock or junior equity unless the Series I Preferred's prior-period dividend has been paid in full — though because the preferred is non-cumulative, a skipped dividend creates no ongoing catch-up obligation.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If Allstate has not paid the full dividend on the Series I Preferred Stock for the preceding period, it cannot pay dividends on or repurchase its common stock or any other junior stock, and cannot repurchase parity preferred stock except on a pro rata basis.

Other Preferreds from The Allstate Corporation

Div Score Breakdown

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