7/7/2025
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In what is becoming an all too familiar trend a $1,000 note will be issued to call a $25 baby bond.
BDC Monroe Capital (MRCC) will be selling a $1,000 note to redeem their 5.75% Notes due 2023 (MRCCL).
There will be no damage to baby bond holders as shares now trade at $25.20.
The prospectus with ‘use of proceeds’ language can be found here.
Once again a $1,000 note is being issued with the proceeds being used to call a $25 baby bond.
Business development company Prospect Capital (PSEC) has announced a new $1,000 note issue with the intention of calling a baby bond.
The 6.25% notes due 2024 (PBB) have been callable since 2018.
No real harm is done to investors as the PBB shares are trading around $25.38 and there is accrued interest and depending on the call date investors should be close to break even.
The new note offering with ‘use of proceed’ language can be read here.
j was right on this one.
Business development company Stellus Capital (SCM) is selling a new $1,000 note issue with the intention to use the proceeds to redeem the $25/share baby bonds 5.75% notes due 2022.
This is another instance of a company choosing to offer institutional bonds instead of selling $25/share retail focused shares.
The announcement is contained in the prospectus for the $1,000 notes which can be read here.
No loss will be incurred on the call as the issue is trading at $25.19 and there is accrued interest which will have to be paid on the call.
J made note of the selling of the $1,000 issue.
JMP Group (JMP) has announced a partial call of their 7.25% baby bonds that have a maturity date in 2027 (JMPNL).
There are 2 million shares outstanding and they are calling $10 million (400,000) worth of the shares effective 2/4/2021. The call is $25 plus accrued interest.
Shares were trading at $24 so this is incrementally profitable for holders.
Barbara was on this call on Reader Initiated Alerts.
BDC Capital Southwest (CSWC) will be calling their 5.95% Notes due 2022 (CSWCL).
The company had called 800,000 shares on 9/29/2020 and they will be calling the balance (about 1.485 million shares) on 1/21/2021 for $25 plus accrued interest.
This is another case of a good issue falling to the proceeds of a 4.50% $1,000 note issue.
No loss will be taken on the call as shares are trading at today at $25.10.