Tim McPartland | Innovative Income Investor

VEREIT Announces Partial Preferred Redemption

As we all knew was coming, REIT VEREIT (VER) has announced the redemption of 8 million shares of the VER-F 6.70% perpetual preferred.

The company had previously redeemed 4 million shares so now in total they have redeemed 12 million shares of almost 43 million outstanding–so we still have 31 million shares trading.

The shares being called represent about 20.58% of all shares outstanding and will be redeemed at $25.028/share which represents liquidation plus accrued. A full dividend of about 14 cents will be paid to holders on 12/15/2019.

So for those that were wondering – the shares will be redeemed on a pro rata basis, so you will see 20.58% of your shares get segregated in your account and on the call date (12/21) they will disappear and cash will be received.

VER-F shares are now trading at $25.26 after falling as low as $25.07 yesterday. I know many folks took the opportunity to buy more shares (I bought 300 more) since the call risk had left the price. My purchase came as one of the readers pointed out a partial call instead of a full redemption–initially I had missed the partial call note.

Thanks to Dave for posting the company press release late today. The press release can be read here.

American Financial Group Prices Subordinated Debentures

As noted earlier today insurance company American Financial Group (AFG) is offering a new baby bond.

The investment grade rated issue has been priced at 5.125% with a maturity date in 2059.

The issue carries a BBB- from Standard and Poors and a Baa2 from Moodys.

There is no OTC Grey Market trading, but it might be available to you before big board trading if you call your broker with the CUSIP.

The pricing term sheet is here.

American Financial Group to Offer Baby Bonds

Insurance company American Financial Group (AFG) has announced a new issuance of baby bonds.

The company has a number of issues already outstanding–3 baby bond issues to be exact.

The company intends to redeem the 6.25% baby bonds due in 2054 (AFGE), which have been redeemable since 9/30/2019.

The new issue will likely be investment grade (BBB- from S&P and Baa2 from Moodys) so the coupon will be fairly low. The permanent ticker will be AFGC when it begins to trade on the NYSE in a week or two.

The preliminary prospectus can be found here.

Ready Capital Reopens Baby Bonds

Multi strategy REIT Ready Capital (RC) will reopen (sell more shares in a currently outstanding issue) their 6.20% baby bonds (RCB).

This issue was originally sold in July, 2019 and was most recently trading in the $25.59 area.

Disclousre–I own this issue and may take this opportunity to add a little more.

The selling price of the new issue has not been announced yet.

The preliminary prospectus can be found here.

Global Net Lease Prices Preferred Issue-UPDATE – OTC Ticker

FINALLY the OTC Grey market ticker has been posted. It is GBLNP–of course now you have to wait on your broker to update their systems.

Diversified triple net lease REIT Global Net Lease (GNL) has priced their new preferred.

The issue comes with a coupon of 6.875% and it will be cumulative, but non qualified.

This is unrated–they will sell 3 million shares plus 450,000 more for over allotments.

The issue WILL trade on the OTC Grey market–likely tomorrow, but the temporary ticker has not been announced–likely one of the folks will post it here in the morning the minute it is announced.

I may/may not have a personal interest in the issue–probably only if it trades at $24.75 or at least below $25–then our interest might only be for a flip.

The pricing term sheet can be found here.