1/13/2025
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Business development company CION Investment (CION) has sold a new issue of baby bonds.
This issue was priced while I was out of the office for a week–thus the late notice. af reminded me of it today in a comment.
I believe this issue is just starting to trade.
CLO owner Eagle Point Institutional Income Fund has priced their new term preferred stock offering. The common shares are not publicly traded.
The issue prices at 8.125% and has a mandatory redemption 10/31/2029.
The issue is a monthly dividend payer.
The company is selling 1,240,000 shares with over allotment shares of 186,000.
Below are press releases from company’s with preferred stock and/or baby bonds outstanding–or just news of general interest. News will be rather slow until the the end of the quarter and start of earnings season in the next couple weeks.
OFS Credit Company Declares Series F Preferred Stock Distributions
Saratoga Investment Corp. Announces Fiscal Second Quarter 2025 Financial Results
Eagle Point Institutional Income Fund Announces Offering of Preferred Shares
Newtek Bank, N.A. Achieves 11.7% Deposit Growth in the Third Quarter 2024
CenterPoint Energy, Inc. to Host Webcast of Third Quarter 2024 Earnings Conference Call
Runway Growth Finance Corp. Provides Third Quarter 2024 Portfolio Update
MetLife Declares Fourth Quarter 2024 Common Stock Dividend
The Eagle Point Institutional Income Fund–a non traded closed end fund (CEF) has announced they are selling 1 million shares of a new term preferred stock.
This is another collateralized loan obligation company under the Eagle Point umbrella.
Their announcement can be read here. Shares will trade on the NYSE.
The original preliminary prospectus from late last week can be read here.
Today I went ahead and initiated a new position in a business development company (BDC) baby bond.
I bought the Trinity Capital 7.875% (TRINZ) issue at $25.29. I currently hold the 7% baby bonds from Trinity (TRINL), but this issue matures in January and this could be considered a replacement. The TRINL issue already experienced a call for 25% of my shares (bonds)
Of course I could have bought the TRINI issue which carries the same 7.875% coupon but I saved a couple pennies with the TRINZ–does it really matter–not really.
I did review the company financials from August and didn’t find any glaring issues–in particular payment in kind holdings (PIK). Of course it is a BDC so there will always be issues of one kind or another–but I didn’t notice anything of unusual concern.
I continue to shop–although once again I don’t feel pressure in particular in light of the 10 year treasury yield backing up–now stuck at 4.03%. The CPI on Thursday could push the rate higher or lower (of course) and then I will see if I want to add more shares of a preferred.