Category: Debt Issuance

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.

UPDATE–the ticker for this will be RILYM when it hits the market in a week (more or less).

Financial firm B Riley Financial (RILY) has announced an offering of new baby bonds.

The new offering will mature in 2025 and will have an early call period starting in 2021. Like many of the B Riley baby bond issues the issue will have a bonus for early redemption–3% the first year, 2% the 2nd and 1% the 3rd year–then at $25 thereafter.

The company plans to use the proceeds to call at least a portion of the 7.50% baby bonds (RILYZ) which become callable 5/31/20

The preliminary prospectus can be read here.

Utility Southern Company (SO) has priced their new issue of baby bonds.

The issue priced at 4.95%, disappointing, but not surprising that it is under 5%.

The company will sell 40 millions shares (bonds) and they will carry a Baa3 from Moodys, BBB from S&P and BBB- from Fitch.

The issue has a early redemption available, at the company’s option in 2025 and a maturity date in 2080.

NOTE–mcg pointed out, and I have verfied, that OTC FINRA shows a OTC Grey Market ticker for this issue so we show it in the grid below. I did find trading on the OTC at $25.09 today. This is unusual, although not unheard of for a baby bond to trade OTC Grey Market so if you have an interest you should watch your broker for an active ticker as shown below.

Jerry Mac had the pricing hours ago on this new issue.

The pricing term sheet for the new issue is here.

UPDATE–as noted in the comments below the SEC Filing is now in. This is a very typical issue, with a early call date in 2025 and a maturity in 2080.

The preliminary prospectus can be read here.

Giant utility Southern Company (SO) will be selling a issue of $25 baby bonds.

No firm details are available (SEC filing is not in yet),

EarlyBird had some preliminary details very today showing a potential 5.125% coupon with an investment grade rating. If you Prefer posted “5% area” so it should come in the 5.0% to 5.125% area–I would be surprised if it were higher.

SO has 3 subordinated notes outstanding now and Georgia Power (a division of SO) has 1 issue outstanding.

You can see the outstanding issues on the “Baby Bond” page–and decide how a 5.00-5.125% issue would stack up.

WR Berkley (WRB) has priced their new issue of subordinated debentures with a fixed rate coupon of 5.10%.

The issue is investment grade.

Maturity is way out in 2059, with an early redemption period starting in 2024.

There will be no OTC market trading, but one may be able to purchase shares (bonds) prior to exchange trading with a call to the brokerage with the CUSIP.

The company can defer interest payments for up to 5 years multiple times without it being declared in default.

The pricing term sheet can be seen here.