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Category: Debt Redemption

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.

Reinsurance Group of America Prices Baby Bonds

Giant reinsurance company Reinsurance Group of America Inc has priced a new giant issue of baby bonds (subordinated debentures) with a maturity date in 2052.

The issue starts with a fixed rate of 7.125% until 2027 after which it will reset to the 5 year treasury plus a spread of 3.456%. The issue will reset every 5 years after that.

The issue has an early call option available to the company starting in October, 2027.

The company has 2 other outstanding baby bonds which can be seen here. The company intends to call the RZA issue with proceeds from this offering–and in fact has already announced the redemption here.

The final prospectus can be found here.

Eugene was on this one.

Conifer Holdings to Sell New Notes

Small and kind of Junky insurance company Conifer Holdings (CNFR) has registered a new offering of notes.

The company has an issue of notes outstanding with a maturity date in September, 2023, but which are currently callable (as of 9/2021). The old issue can be found here Shares were trading at $22.xx yesterday and today are at $24.70.

The company is losing money and the common shares are trading at $1.73/share. Potential investors should be very cautious with this company. They recently released earning which can be seen here. AM Best has recently downgraded most of the company’s businesses.

The S-1 registration statement can be seen here.

2whiteroses dredged up this potential offering.

Sachem Capital to Sell New Baby Bonds

Hard money lender Sachem Capital (SACH) has announced a new issuance of $25 notes.

The issue will have a due date in 2027 with an early redemption available to the company starting in March, 2024.

The notes will trade under ticker SCCE when they begin to trade on their permanent market–there will be no OTC trading.

The company currently has 4 note issues outstanding as well as 1 perpetual preferred issue–they can be seen here. The company has not mentioned a call on the 2 issues they could call.

The preliminary prospectus can be found here.

Fabrib was right on this one with EarlyBird chiming in with yield talk the 6% – 6.25% area.