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Month: December 2020

VEREIT Comes Calling Again

Large triple net lease REIT VEREIT (VER) has again called 4 million shares of their 6.70% perpetual preferred (VER-F).

This has been about a quarterly event this year–they called in 6/20, 9/20 and now in December (effective 1/21).

Many of you are already aware of this redemption–but for those maybe thinking about buying some shares it is good to know the history. If you click the link above you can see what has happened over the last 18 months or so.

This issue was originally over 42 million shares and after this call there will be around 14.9 million shares outstanding. Given the history it would seem logical that by this time next year there will be NO shares outstanding.

I see shares have popped today to $25.36/share. Dividends are about 13.9 cents/share monthly so one might be wise to buy only a little lower–unless they call all shares in the next 90 days one will make money–but you can’t always tell what they might do. I am guessing they will make 3 more calls over the next 9 months–meaning 9 dividends left to be paid–but that is simply a wild guess.

Disclosure–I own a little of this issue bought at lower levels, but will buy more if it sets back into the $25.15 area.

Sachem Capital Reopening Baby Bond Issue

Hard money lender, and REIT, Sachem Capital (SACH) has announced they are ‘re-opening” the currently outstanding 7.75% baby bond issue (SCCC).

No offering price, no number of shares to be sold has been announced although I expect the offering price to be $24.75 to $25/share.

This issue was originally sold on 8/26/2020. This issue was small–just 520,000 plus over allotment. The issue was reopened 10/20/2020 and another 520,000 shares were sold. The issue had been trading at $25.07/share today–the issue had just gone ex-dividend for about 48 cents a few days ago.

NOTE–this offering was announced late in the day and no negative reaction was logged this trading day in the pricing of the outstanding shares–but normally we will see a setback in prices with more shares being sold. aview made note of the offering on the Reader Initiated Alerts page today at 3:25pm.

The offering prospectus can be found here.

General Finance Announces Redemption of Baby Bonds

Leasing/rental corporation General Fiannce (GFN) has announced that they will redeem the last $11.6 million of the 8.125% baby bonds (GFNSL) on 1/15/21.

The announcement is here.

The company had previously made 2 partial calls of the bonds.

GFN has a newer baby bond outstanding with a coupon of 7.875% as well as a $100 perpetual preferred with a coupon of 9% which you can see here.

Updated Fidus Investment Information

As mentioned yesterday BDC Fidus Investment (FDUS) plans to call their 5.875% baby bonds (FDUSL) with the proceeds of a new $1,000 bond issue.

FDUS updated their ‘use of proceeds’ to include the partial call of their 6% baby bond issue (FDUSZ) which becomes callable 2/15/2021.

CR mentioned this possibility yesterday as did others.

The revised filing is here.

The $1,000 bond was priced at 4.75% as noted by some others.

Sortable Spreadsheet – New Instructions

New issues added as they occur and begin trading.

Please NOTE that this will not work with EXCEL only Google Sheets.

  1. You need a Google Account to use this sheet correctly. Go here to set up an account if you do not have one. While an account gives you gmail and other apps it importantly gives you an account for accessing and using Google Sheets.
  2. After creating an account with Google make sure you are signed in.
  3. Go the the sortable spreadsheet which you can find here.
  4. Once you open the spreadsheet as long as you are logged into your Google account the spreadsheet will automatically be in you spreadsheet list.
  5. You will see that when you open the spreadsheet it will say ‘view only’.
  6. Make a copy of the sheet for yourself–go to File, Make a Copy then give it the name you want.
  7. You will now be able to use own copy to sort etc.

Note that there are 3 sheets to the spreadsheet–I have hidden 2 which are not needed by you unless you wish to make changes. The tab you need is labeled “Filter”.

Unless you are very well versed in Google Sheets I would suggest not modifying the other 2 pages–BUT if you are like me and just can’t help yourself you can always come back here if you ‘break’ the sheet.

BDC Fidus Investment Comes a Calling

Fidus Investment (FDUS), a BDC is issuing a new $1,000 note due in 2026.

The company has announced the intention to redeem their $25/share notes due in 2023 (FDUSL) which carry a coupon of 5.875%.

There will be a minor loss for holders as the shares (bonds) were trading at $25.42 yesterday and are $25.00 premarket today. It is likely the company will pay a full quarter interest payment (although we don’t know the call date yet) which is about 37 cents/share so shares have a value in the $25.37 area.

The ‘use of proceeds’ statement can be read here (from the prospectus for the $1000 notes).

Another case of a decent $25 issue going down in flames to a $1,000 issue.

On Line Medical Company Ontrak Re-opening Preferred Issue–UPDATED

UPDATE–Ontrak has announced they are selling 1.73 million shares in this follow on offering. They will also have 259,500 shares available for overe allotment. The offering price is $24.75. The pricing term sheet can be found here.

Ontrak (OTRK) has announced a reopening of their 9.50% cumulative preferred stock which originally was issued in August.

Pricing and the number of shares to be sold have not been announced, but I assume it will be in the $25 area.

The preliminary prospectus is here.

This is a relatively young company and just taking a quick peek at their financials their revenue growth has really ramped up—of course no income at this stage.

Current outstanding shares are trading at $24.72 right now after being as high as $25.50 in the last few days preannouncement.

Triple Net Lease REIT American Finance Trust Prices New Preferred–Update

UPDATE–OTC grey market ticker is same as permanent ticker AFINO

Smaller triple net lease REIT American Finance Trust (AFIN) has priced their new preferred issue. The issue prices at 7.375%.

The issue is cumulative, but not qualified. There is no rating on the issue.

No grey market ticker has been assigned although one should be assigned shortly.

The pricing term sheet can be found here.

Athene Holdings OTC Grey Market Ticker

Ever since the Covid 19 pandemic arrived the filing of pricing documents in the evening is very SLOW. So I will publish data on this new issue (Athen Holdings LTD) later tonight or first thing in the morning when it is finally filed.

I know the issue priced at 4.875% (thanks razorbackea) and a OTC Grey market ticker has been assigned. The grey market ticker will be ATHDF. That is all we know at this time.