Debt Redemption | Innovative Income Investor

mREIT Redwood Trust to Sell High Yield Baby Bonds

Once again mortgage REIT Redwood Trust (RWT) is coming to market with a new issuance of baby bonds. This will be the 3rd issuance by this company in 1 year. Previous issues were sold on 1/17/2024 and 6/13/2024 with 9.125% and 9% respectively. The company also has a 10% fixed rate reset preferred outstanding (RWT-A).

I have not reviewed the company financials lately, but on the surface they are certainly racking up a lot of high yield debt.

The preliminary prospectus can be read here.

Thanks to J for posting this in Reader alerts just a bit ago. EarlyBird chimed in with some added detail.

BDC Great Elm Capital Prices New Baby Bond

Smallish business development company (BDC) has announced pricing for a new issue of baby bonds. The new issue prices at 8.125% and proceeds will be used to call the 6.75% baby bonds (GECCM) on 10/12/2024—these notes have a maturity on 1/31/2025.

The pricing term sheet is here.

mREIT Chimera Announces a New Baby Bond

Mortgage REIT Chimera Investment (CIM) has announced they are selling a new issue of $25/share baby bonds.

They are just the latest of the mortgage REITs to sell baby bonds–and they had sold an issue back in May with a 9% coupon.

The preliminary prospectus can be read here.

J was the 1st one to comment on this new issue.

Oxford Lane Capital Announces New Baby Bond

Oxford Lane Capital (OXLC)–a Collateralized Loan Obligation owner, has announced a new baby bond offering.

OXLC has numerous term preferreds and baby bonds outstanding which can be seen here.

The preliminary prospectus can be read here.

Sachem Capital Issues Strange Baby Bond ‘Redemption’ Notice

Typically bonds just mature and one receives the proceeds in their account–no need for a ‘maturing’ press release. This morning Sachem Capital (SACH) issued a press release announcing they would be paying the bonds off (SCCB) on 7/1/2024 and ‘delisting’ them from the exchange.

It seems weird to me–of course they are paying them off and delisting them–it is required. Maybe some were expected a default?

The press release is here.

It is interesting they announced they were selling a $1000 note issue to pay off the SCCB 7.125% baby bonds and MAYBE part of or all the 6.875% SACC issue which matures in December, but no further word has been heard on this issuance.

Thanks to af for posting the original press release.