B Riley Financial (RILY) which had initially announced a new offering of 2 million shares (bonds) has sold the issue and it has upsized the issue to 4.6 million plus an over allotment of 690,000.
The company has announced at least a partial redemption of 7.50% RILYZ notes. There are about 4.4 million shares of the RILYZ outstanding.
The coupon is 6.375%. The issue is rated BBB+ by Egan Jones.
An early redemption date starts on 2/28/2021–the company will pay a 3% premium the 1st year (2021-2022), a 2% premium the second year (2022-2023) and 1% the 3rd year (2023-2024). There after until maturity on 2/28/2025 redemption will be at $25 plus accrued interest.
There likely will be NO Grey Market Trading, but one may be able to secure some before exchange trading by calling their brokerage.
The pricing term sheet can be read here.
Gridbird was on top of this pricing.
RILYM now trading at TDA for around $24.90.
Whatever happens with the call of RILYZ, I bought some at 25.28. It is high yielding cash at worst and a potentially nice pop if only partially called.
kapil–pretty sure they haven’t announced an official call yet–baby bonds aren’t redeemable until 5/31/2020. You are right this will be an ok hold for at least a few months–maybe much longer with a call threat keeping it maybe around 25
You’ll get about 62 cents of dividends between now and then. 4.5% yield to call. You may do better by selling earlier. If it’s a partial call the remaining shares will probably sell above par. Of course the risk is that RILY falls apart before then.
At a quick glance, I’m having a hard time seeing where the value is on this one in relation to the other issues from the company. It doesn’t seem to be an opportunity to flip at around $25 unless I’m missing something.
At 24.50 RILYM would be attractive to me. RILYO or RILYN currently look better to me.
Just a heads up; I initiated a position at Vanguard for RILYM through the CUSIP number given to their bond trade at $24.92. Anyone else execute an order?
Wishing you profitable investing, Nomad
Do they charge a fee for orders that way? Thanks!
Just executed an order at Vanguard for $24.95. I did this through their broker with no commission.
Thanks jag
Thanks, got it at vanguard for $24.95. My first desk order!
Fidelity won’t do it over the phone. Big surprise.
It took me 20 minutes on the phone with Vanguard but I was able to make the purchase at 24.95. No commission.
RILYZ now part of my sweeps account. 4.5% YTC.
Are you sure about the 2.1M shares of RILYZ? I think that was the IPO but it appears they added some at some point. The 10Q says there is 108-110M of RILYZ. That’s what Etrade says too.
When will exchange trading begin?
Max–on baby bonds there is not a set date–likely in the next week. Typically you have to watch your broker and see when their system recognizes the ticker. Or just by being here we will know because folks will begin to comment on when it trades.
Landlord–I corrected it–I picked up the L issue off the 10-q. Thanks
Schwab bond desk accepting trades at $24.96. Must use the cusip.
Schwab bond desk will trade it today if you call, but for a $25 fee. At least that was my experience.
If asked politely Schwab will usually refund that $25 fee.
I did ask politely, and they politely insisted they had to charge the fee. 🙂
Do you know the cusp?
Thx