Category: New Issue

Closed end fund Gabelli Multimedia Trust (GGT) has priced their previously announced cumulative perpetual preferred stock.

The coupon is fixed at 5.125%, which is about as expected for a likely strongly investment grade preferred. The company anticipates a A2 rating from Moodys, but thus far we do not see a Moodys rating on their website.

Being a closed end fund the company must maintain a asset coverage ratio of 200% or more and most recently GGT has a coverage of 382% (as of 6/2019).

The issue will trade immediately on the OTC Grey Market under temporary ticker GABGP–in fact I see a few shares have crossed around $25.03 today.

The pricing term sheet is here.

As some on the site already know Medallion Bank (a division of Medallion Financial (MFIN)) has sold a new issue of high yield preferred stock.

Note that this was sold last week, but has just begun trading. It is trading weak–now at $24.48.

Note that this issue is floating starting in 2025 and is NOT trading with a 3 month Libor rate, but is with 3 Month SOFR (the replacement for 3 month Libor). You can see the SOFR page at the New York FED here.

The coupon on this issue is high because they are a higher risk lender. Parent company Medallion Financial was the main lender for taxi medallions which has become a very poor business with the advent of Lyft and Uber. Recent financials appear to show they are slowly recovering by reducing taxi medallion lending drastically–which has involved many writedowns in the past.

Approach this issue with caution and make sure you do your due diligence.

The best place for research is the company website–here.

Medallion Bank is regulated by the FDIC so they do NOT file with the SEC.

Parent company Medallion Financial has a 9% baby bond outstanding which trades well–now at $26.33

For those wanting to access the FDIC regulated filings you can go here and then search by Medallion Bank.

Closed End Fund (CEF) Gabelli Multimedia Trust (GGT) has announced a new issue of perpetual preferred stock. The issue should be strongly investment grade.

The pricing has not been announced via the SEC site but an OTC temporary ticker has been assigned as GABGP.

The company had previously announced the redemption of the 6% GGT-B issue on 12/26/2019 and they will use proceeds from this new issue to pay for the redemption.

There is just 1 other GGT preferred outstanding which can be seen here.

The preliminary prospectus can be read here.

Further company guidance can be seen here.

Self storage giant Public Storage (PSA) has announced the pricing of their new preferred issue.

The coupon will be 4.75%, which is in line with the other recent issues from PSA. Proceeds are to redeem the 5.875% PSA-A issue on 12/30/2019.

Being a REIT the issue is cumulative and non qualified.

The issue is rated A3 from Moodys and
BBB+ by S&P.

Trading begins immediately on the OTC Grey market under ticker PBSGZ.

The pricing term sheet can be read here.

Finally the final prospectus for the new Gabelli Equity Trust (GAB) preferred has been posted.

As everyone knows the coupon is 5% with an early redemption available to the company in 2024.

Issue is cumulative and likely qualified (this is not guaranteed and various dividends may not be qualified–some may be return of capital).

The company said they anticipated a Moodys rating of A1, but Moodys has no rating issued at this time–we shall see if it hits in a day or two.

The final prospectus can be read here.