Certainly there are a number of folks who already own (disclosure-I have a full position), or have considered, the following investment and maybe there are others that might want to consider owning the preferred shares below.
The particular preferred I am writing about is the Liberty Broadband 7% Cumulative Redeemable Preferred (LBRDP).
This security is a $25 preferred that was originally issued by GCI Liberty (now an operating division of Liberty Broadband) in March 2018. The company combined with Liberty Broadband in 2020. The preferred were exchanged for Liberty Broadband shares with the same terms and conditions of the original shares.
The attractive feature of this preferred is that there is no early redemption and it has a mandatory redemption in 2039. Shares are currently trading at $27.23 for a current yield of 6.46%.
Liberty Broadband is a company with only minor operating businesses–the primary holding is 26% of Charter Communications (CHTR) a giant sized broadband/cable company (revenue around $50 billion) which accounts for 75% of Liberty Broadband assets. Liberty has assets of over $20 billion with liabilities of $7.6 billion (as of 3/31/2021) meaning the balance sheet is extremely strong. The most recent 10-Q quarterly report can be read here.
While the preferred issue is unrated it would certainly appear to qualify for an investment grade rating based on the balance sheet.
This is not a recommendation to buy this security, but just ‘food for thought’ in these times of low coupons.
Further Note–In the event of a merger, buyout, liquidation or ‘winding up’ it is highly likely these shares could be redeemed.