This may have been posted in comments somewhere–but just in case.
Heartland Financial (HTLF) has agreed to be acquired.
HTLF has a 7% fixed rate reset preferred outstanding (HTLFP)
Category: Company News
Philadelphia Bank Seized
Smallish Philadelphia bank Republic First was seized by the FDIC late Friday–the banks 32 branches will reopen as Fulton Bank on Saturday. Republic First has assets of about $6 billion.
The cost of the failure to the FDIC will be around $670 million–in my opinion this will NOT cause a major special assessment to banks in future quarters.
It is my understanding that the bank had a very high level of uninsured deposits, which is always dangerous–my suspicion is that deposits were ‘fleeing’ at a pretty fast rate. The bank also held a large unrealized capital loss on their bond portfolio
Mega REIT Realty Income to List Preferred Stock
Giant net lease REIT Realty Income (O) has registered new preferred shares which have come about because of their acquisition of Spirit Realty.
Spirit had a 6% perpetual preferred issue outstanding which Realty Income has essentially replaced with a new Realty Income issue. Most of the data on the issue can be found here is the merger document.
The shares have been approved for listing on the NYSE. The ticker will be O-.
Thanks to Justin for noting this one.
B Riley Presents Today
Financial Firm B Riley (RILY) is doing an investor presentation today–not sure of the time–could have happened already.
Common shares tumbled 10%ish yesterday and are off another buck today at $21.81.
As everyone knows RILY has a gaggle of baby bonds outstanding as well as a preferred issue which have traded weakly in the last month. Inquiring minds want to know what is going on—except they hold a portfolio of pure junk.
BDCs Forecast to Have a Tough 2024?
Thanks to 2whiteroses for catching this blurb.
Here is a link to a short blurb put out a couple weeks ago by the Fitch ratings agency–I had not seen this and thought it might be of interest to others.
Note that the full article requires a subscription (of course it does), but maybe folks can find it elsewhere on the web.
Of course we all have opinions–but the more opinion the better.
There Goes Another One!
Once again one of the junkier issues sold during the time of zero interest rates is going away.
Harbor Custom Development (HCDI) has filed chapter 11 tonight. The company sold a 8% convertible preferred issue 6/10/2021. These shares have been on the move lower almost since the date of issue.
Esports Entertainment Suspends Preferred Dividend
Another pure junk preferred issue which carries a coupon of 10% has had their dividend suspended. Esports Entertainment (GMBL) 10% convertible preferred (GMBLP), which was sold during the zero interest rate period in 2021 is a $10 issue–now trading at $4.90–and in my opinion will go to ZERO. The common shares are trading around 2 cents.
Current assets are $2.2 million versus current liabilities of $10.1 million. Toast!
Disaster or Opportunity?
B Riley (Rily) common shares are taking a thrashing like we seldom see – now trading at $17.5 down over $7/share.
The baby bonds are all off around $2.50-$3/share.
Shares are all tanking badly on potential fraud mostly relative to the Franchise Group take private and the CEO of Franchise Group Brian Kahn. I posted links last week–here is a recent posting on Yahoo Finance.
My question is whether it is a super bargain now or will we see the fraud charges come to fruition? I certainly will not be involved, but maybe some brave souls will be.
B Riley Getting Whacked Again
Financial firm B Riley (RILY) is getting whacked again today – the common shares are down $3.75 to be at $26.27 which is down $15 in the last 5 days.
Their baby bonds and 1 preferred issue are getting spanked as well–down 1 to 4%.
This is purely a trust issue – ‘we don’t trust you Bryant Riley’. I have written very extensively about the incestuous relations that B Riley has at play. They have had their fingers in so many marginals ‘deals’ including one of the most recent which was the Franchise Group ‘take private’. Other deals are with Babcock-Wilcox, Synchronoss Technologies, Maven (Now Arena) and many others. The latest is that Brian Kahn who was the found/CEO of the Franchise Group may have been involved (a co-conspirator) in a major securities fraud. That article is here.
My initial clue as to problems stems for a number of years ago – my wife worked for a company that James Heckman ran – here. More is here. B Riley stepped in to ‘bail out’ a new company Heckman founded (Maven). After that point Rily seemed to be involved in many very dicey financing – some of you know the story. They were involved with iMedia (which had a baby bond outstanding) that filed for BK in July.
If you are a holder be very careful—I’m not saying that where there is smoke there is fire–but there might be.
Of course all parties are innocent until proven otherwise.
Did You Notice These Headlines?
A couple items of note in the headlines from last night.
The skunks at Prospect Capital (PSEC) have made a tender offer for their $25 5.35% perpetual preferred shares (PSEC-A) for about $15.88/share. Shares were trading in the lower $14’s yesterday with a current yield over 9%–today they are trading at $15.82.
Also Vornado Realty (VNO) announced their earnings – they have been hurting for the last year–but just maybe they have things going in the right direction–maybe. Their financials are fairly complicated to try to understand–lots of moving pieces. Vornado has numerous perpetual preferreds outstanding.