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Alta Equipment Group Sells Preferred Issue-Corrected

Corrected—I had the 1st call date wrong and now have corrected it. Also 2whiteroses mentioned this issue on 12/17/2020 which I missed–Bob in Thailand mentioned it last night which I saw–credit where credit is due.

Alta Equipment Group (ALTG) has sold a new cumulative preferred issue with a high yield coupon of 10%.

Please note that this one flew under the radar until Bob in Thailand noted it yesterday–actual issuance was on 12/18/2020. I can find no trading on the issue yet (although maybe you can).

They have sold 1.192 million $25 shares with an over allotment available of 10,000 shares.

The company sells construction equipment (primarily) and had revenue of near $600 million through the 1st 9 months of the year with a loss of around $20 million during this time.

I an not familiar with this company and I would encourage all to do some deep due diligence before any purchase.

The pricing term sheet is here.

The final prospectus can be read here.

18 thoughts on “Alta Equipment Group Sells Preferred Issue-Corrected”

  1. Please revise 1st call date from 12/25/25 to 12/22/25 (3 days earlier).

    From company’s 8-K, filed Dec. 22:
    Generally, the Series A Preferred Stock is not redeemable by the Company prior to December 22, 2025. However, upon a change of control or delisting event, the Company will have the special option to redeem.

  2. I just have one simple question. After going to their homepage and reading thru their 3rd Quarter report why would they offer such a generous coupon of 10%??? Iam not a CPA so it just seems strange to me.

  3. Since they are not making any money, all distributions will be return of capital? Correct?

    1. Most likely, yes. But the CFO’s of some companies have no idea if it is or not, and report them as dividends.
      There are 2-3 publicly traded preferreds where the company has negative stockholder equity but insist they are dividends and not return of capital.

  4. Confusion on my part regarding the 1st call date: 12/18/2025 (on III) or 12/22/2025 (on QOL).

    FWP says it’s the 5th anniversary of the “date of ISSUANCE”.
    12/18/2020 is the TRADE date.
    12/22/2020 is the SETTLE date.

    Which one is the date of ISSUANCE –> the TRADE date or the SETTLE date?

    1. 1st redemption date is 12/22/2025, per the 8-K, filed Dec 22:

      Generally, the Series A Preferred Stock is not redeemable by the Company prior to December 22, 2025. However, upon a change of control or delisting event, the Company will have the special option to redeem.

  5. Tim – I’m cut to the quick, emotionally scarred for life.. lol….. see my Reader Initiated Alerts post 12/18, 9:07 AM and subsequent replies from Justin and Bob-in-De.

    1. Thanks 2WR–not wanting damaging scars I’ll take care of that. Have a good new year.

    2. Maybe your wife can buy you something off QVC to help with the scars?

      I am sure they have some nostrum or ointment that would do the trick, and if not, it will at least help with the preferred payments ;o)

      Happy New Year!!

      1. Ha! Good one, Scott, but don’t do anything to encourage her. We’ve already built an addition on to the manse just to house previously unopened QVC packages including Hempvana Pain Relief EXTRA Cream with Double Hemp seed oil and Beekman Bros Arcadia Goat Milk Lotion (“Take yourself to a pastoral paradise with the country sweet scent of this healing salve”) – tried ’em both – scar’s still there…. lol

        “Ladies and gentlemen, attention please
        Come in close so everyone can see
        I got a tale to tell
        And a listen don’t cost a dime
        And if you believe that we’re gonna get along just fine
        Well I’ve got a little somethin’
        Guaranteed to ease your mind
        It’s called Snake Oil y’all
        It’s been around for a long, long time”
        S. Earle

        BUT WAIT, THERE’S MORE! If you order right now in the next 2 minutes, we’ll throw in an extra $1.50 FREE for all your common holdin’ QVC buddies. Hurry, though, we’ve only got 2,437,852 bottles left and we’re super busy with our phones lines off the hook busy…

        1. Ha!

          My wife is a hoarder so I feel your pain in having to expand the house.

          I bought her a robo-vac for Christmas in the hope that it will encourage her to keep the floors clear. I think I am going to need the off-road package, and bucket shovel upgrade for it to make any headway though!

  6. They also have warrants: ALTA EQUIPMENT GR 25 WTS ALTG/WS (Schwab)
    elsewhere might be ALTG.WT

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