Terms

Series

Fixed Rate Noncumulative Perpetual Preferred Stock, Series A

Liquidation Preference

$25.00

Rate Type

Fixed

Payment Frequency

Quarterly

Cumulative

No

Perpetual

Yes

Convertible

No

Callable

Yes

First Call Date

December 15, 2024

First Call Price

$25.00

Capital Stack Ranking

Junior To: All Debt Obligations Of Axa Equitable Holdings, Inc.; Pari Passu With: Dividend Parity Stock; Senior To: Common Stock, Junior Stock

Tax Classification

Qualified Dividend

Qualifies for QDI

Yes

Qualifies for DRD

Yes

Depositary Share Fraction

0.001

Prospectus Summary

AXA Equitable Holdings, Inc. is offering Depositary Shares, each representing a 1/1,000th interest in a share of its Fixed Rate Noncumulative Perpetual Preferred Stock, Series A, with a liquidation preference of $25 per Depositary Share (or $25,000 per underlying preferred share). The coupon rate was not disclosed in this preliminary prospectus. Dividends are paid quarterly on March 15, June 15, September 15, and December 15, commencing March 15, 2020. Critically, dividends are non-cumulative: if the board does not declare a dividend for any period, that dividend is permanently forfeited and the company has no future obligation to make up the shortfall. As a preferred stock issued at the holding company level, these shares rank senior to AXA Equitable's common stock and all other junior securities with respect to dividends and liquidation distributions, but are junior to all of the company's debt obligations. Investors should note structural subordination risk: AXA Equitable Holdings is a holding company whose primary assets are interests in operating subsidiaries; creditors of those subsidiaries have prior claims on subsidiary assets. A rating agency event redemption allows the company to call the preferred in whole (but not in part) at $25.50 per Depositary Share before December 15, 2024, within 90 days of such an event. The standard optional redemption date is December 15, 2024, at $25.00 per Depositary Share. The effective yield at par will be determined by the final coupon rate, which was omitted from this preliminary filing. For eligible individual U.S. holders, dividends from a C-corporation preferred such as this would typically qualify for the preferential qualified dividend income (QDI) tax rate; corporate holders may be eligible for the dividends-received deduction (DRD), though neither is confirmed in the available text. The dividend stopper provision blocks dividends and repurchases on common stock and junior securities if Preferred Stock dividends for the preceding period have not been paid in full — providing a measure of protection to preferred holders, though it does not compel the board to declare dividends on the Preferred Stock itself.

Summarized from the SEC prospectus filing.

Distribution History

Ranking vs. Other Preferreds

Dividend Stopper Provisions

Dividend Stopper Description

If AXA Equitable has not paid full dividends on the Preferred Stock for the preceding dividend period, it cannot declare or pay dividends on common stock or other junior securities, repurchase junior stock, or redeem parity stock except on a pro rata basis.

Other Preferreds from Axa Equitable Holdings Inc

Div Score Breakdown

Reinvesty's multi-factor safety analysis for this preferred, composite score: 44 (Average)