Closed end fund RiverNorth/Doubleline Strategic Opportunity Fund (OPP) has announced a new preferred stock offering.
This is the 1st CEF preferred offering we have seen for quite a while and we will see what type of coupon the company is able to garner.
Remember that CEF’s must have an asset coverage ratio of 200% which adds some safety to the shares. This closed end fund is paying a dividend of north of 15% as the price of shares has eroded–remember lousy CEFs can have very nice preferreds.
Moodys has rated the new issue A1–high investment grade.
Eugene was on this one right away.