Category: Preferred Stock Call

REIT Gladstone Commercial (GOOD) is calling the outstanding monthly paying 7% preferred shares (GOODM).

While this is not a huge surprise it does bring about a ‘teaching’ moment—at least for me and probably many others.

CR noted that a full call notice was received from Fidelity on this issue. This prompted a response from Rob in Vegas of “how does Fidelity learn about the full call of GOODM before Gladstone even issues a press release or files a SEC 8-K? CR responded that he/she has checked around for press releases etc. and found nothing.

From the above exchange mcg (who is knowledgeable on these things) chimed in–companies are only required to notify the depository and owners of record. Press releases and 8-k filings are NOT required, but done as a courtesy by the company.

Thanks to all who ask questions and in particular those who answer them–I made my first common stock purchase 50 years ago this fall and had not asked this question–nor did I know the answer.

As noted by Fabrib on the site all of the older preferred issues of Arbor Realty Trust (ABR) have been called for redemption.

The effective date is 6/24/2021.

The company press release is here.

Ally Financial (ALLY) has announced they will redeem 53.2% of the ALLY-A 8.125% fixed-to-floating rate trust preferred shares outstanding. The redemption date is 5/24/2021.

The announcement is here.

The company sold a $1,000/share 4.70% fixed rate reset preferred to finance the redemption.

J noted this redemption in the Reader Alerts section.

As mentioned by LarryL insurer PartnerRE (not traded) has called 3 issues of preferred stock today.

The company, which is now a non-public company, has called their PRE-G 6.50% issue, the PRE-H 7.25% issue and the PRE-I 5.875% issue. Calls are effective 5/3/2021.

This leaves only the newer PRE-J 4.875% issue outstanding.

A call on these issues had been expected and thus no loss of magnitude will be realized on the call.