6/25/2024
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Little Sachem Capital (SACH) is selling an issue of $1000 notes to pay off their maturing SCCB 7.125% baby bonds on 6/30/2024. ADDITIONALLY they may call all of or a portion of the SACC 6.875% baby bond which mature on 12/30/2024.
The prospectus for the new issue is here. It will be interesting to see what coupon this new issue prices at later today.
Prospect Capital (PSEC) has call a baby bond issue.
The issue called is the 6.875% PBC issue which will be called on 12/30/2021–they become redeemable on 12/15/202.
Shares had run up to $26 just a few days ago and today have plunged to $25.16
Ken was on top of this call.
B Riley (RILY) has priced their previously announced baby bond issue.
The issue prices at 5.00%. The issue is rated BBB+ by Egan-Jones.
The company is selling a giant sized 12 million shares (bonds) with another 1.8 million available for over-allotment. Interestingly the company had preannounced a 6 million share sale so this was obviously upsized from the original amounts.
RILY has many outstanding baby bonds and preferred stock issues which can be seen here.
With the large issuance for this new issue there should be little doubt they will redeem the RILYO 6.75% issue. Additionally they may redeem the RILYM 6.375% issue. In both instances the company would have to pay a ‘bonus’ for early redemption.
The issue will trade on NASDAQ sometime in the next week or so under ticker RILYG. There is no OTC trading, but if one desires access to shares prior to exchange trading they will need to call their brokers bond desk.
Business development company (BDC) Logan Ridge Finance (LRFC) has announced they have sold $50 million worth of private placement notes with a coupon of 5.25%.
They stated they plan to redeem a portion of the 6.00% notes due 2022 (CPTAL). No firm announcement has been made on the redemption.
Once again we are losing exchange traded debt to a private placement.
Note–Logan Ridge Finance was previously Capitala.
Once again serial issuer of baby bonds B Riley Financial (RILY) has announced a new call.
They will call the 6.875% RILYI baby bond issue on 10/22/2021.
UPDATE – Shares closed yesterday at $25.91–redemption is at $25 plus accrued interest and a 25 cent bonus for early redemption. (as Fabrib reminded me)
The Southern Company (SO) will be calling their 5.25% junior subordinated debentures soon.
The issue to be called are the Series 2016A 5.25% shares (SOJB). At this moment these baby bonds are trading at $25.35.
No definitive date for the call is set, but they become callable on 10/1/2021.
The company has sold an issue of 1.875% notes in which they have stated the ‘use of proceeds’ is the call the above notes. Data is here.
Early today Telephone and Data Systems (TDS) called their 6.625% (TDI) baby bonds which have been callable since 2010.
Not unlike many other issues these $25/bonds were trading way above any reasonable level–closing last Friday at $28.21.
Not sure who was buying at these levels, but recent buys gave back almost $3/bond really quick early in todays trading–now trading at $25.40
This is not the 1st time–nor will it be the last, where new buyers were not paying attention to their level of risk when buying–oh well let’s just call it a ‘lesson’.
While I didn’t hold any of the issues called today by Telephone and Data Systems (TDS) and majority owned US Cellular (USM) I hate to see 3 baby bonds go all at once.
As noted by Woody, Greg and mbg earlier today the related companies are calling 3 issues of baby bonds.
TDS is calling the TDJ (7.00%) and TDE (6.875%) issues. TDS had 4 issues outstanding so 2 remain. You can see them here. Call date is 5/12/2021.
Us Cellular (USM) is calling the UZB (7.25%) baby bond effective on 5/12/2021.
USM has will continue to have 4 baby bonds outstanding. You can see them here.
All of these issues fell about 1% this morning as they got ahead of themselves and holders will take a small loss of the calls.
I had these issues on my ‘watch list’ for dividend/interest captures, but did not hold any as they were too high in price and we all knew calls were likely coming.
BDC Investcorp Credit Management(ICMB)has announced a new $1,000 note issue with a maturity in 2026.
The company will call the 6.125% baby bonds (CMFNL) with the proceeds.
It will be interesting to see how low this issue is priced given the Horizon Technology Finance (HRZN) priced yesterday at 4.875%.
The new note prospectus is here.
It is obvious that everything that is redeemable by a company that is solvent will be redeemed ASAP.
There are only 2 baby bonds maturing yet this year and both issues reach maturity in April.
Medallion Financial (MFIN) has a 9% note (MFINL) maturing on 4/15/2021. The issue is trading at $25.39 at this moment–it had just gone ex-dividend in late December. The issue will pay 1 more full interest payment of 53.6 cents/share on 4/15/2021.
REIT Ready Capital (RCP) has a 6.50% senior note (RCP) maturing on 4/30/2021. The issue is trading at $25.12 now after going ex-dividend earlier in January. There will be one more full interest payment of 40.63 cents/share paid on 4/30/2021.
I only note this because maybe there is a relatively safe 1.x% in the Ready Capital issue in the next 3 months to stash some excess cash.
I don’t believe that either issue will have any trouble being redeemed, although Medallion Financial is not a very strong finance company.
On the site we have the baby bond page on which you can ‘toggle’ by coupon, current yield, maturity dates or just alpha.