I hadn’t noticed that CHS released their earnings on Wednesday for teh quarter ending 11/30/23.
Earnings were off in most sectors of the business from versus the year ago quarter–but that quarter was a real blow out to the upside.
Overall net income was $523 million–which continues to represent stellar earnings, but we all know earnings can be quite volatile in the energy and ag sectors.
The company press release is here.
I’m already getting 7% on my buy of the M so I can leave it alone and not worry about flipping it and looking for something to replace it with. The L goes up and down depending on the ex dividend date so buying more recently at 25.30 I am not going to complain.
Has there been any comment about the pref reset.
See the “Preferred Stock” section of the 10-Q (excerpt below)
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(b) Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulates dividends at a rate of 7.10% per year until March 31, 2024, and then will fix at a rate of 7.10% based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.
(c) Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then will fix at a rate of 6.75% based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.
That makes me happy I swapped out of those issues last fall- thanks to the discussion on this board.
Once again saved by Tim and his minions! (B-Banana!)
Well, CHSCM has the best yield to first call out of any of the CHS preferreds.
I’m going to ignore the yield to call in this instance as CHS isn’t likely to redeem the issue with lowest rate. I have a bunch of the N and just 100 shares of the M that I’ll look to switch out of into the L or N.
While we now know than CHSCN will remain fixed at 7.1%, it is still callable in March. I am holding but would not commit new funds much above par.
Private–no doubt you mean everyone here–except me.
Tim, I mean especially you. The rest of us are just the minions (technically, your minions). We wouldn’t be here if you didn’t make this space work.
Thank you for your work and for keeping this site going.
See p 3 , Item 5 of linked 10Q for the language regarding N and M becoming fixed
Good deal, I’ll take that.
2wr…is this confirmation? thank you
(b) Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 accumulates dividends at a rate of 7.10% per year until March 31, 2024, and then will fix at a rate of 7.10% based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.
(c) Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 accumulates dividends at a rate of 6.75% per year until September 30, 2024, and then will fix at a rate of 6.75% based on the terms of the contract and application of the Adjustable Rate (LIBOR) Act.
Yes, I see where I left a number off the reference to the 10Q language – It’s p36 [not p 3], Item 5
On January 2, 2024, per the terms of our Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 and Series 3, and the Adjustable Interest Rate (LIBOR) Act, the stated rates of 7.10% and 6.75%, respectively, were fixed at 7.10% and 6.75% (the “Fixed Rates”), respectively. We will pay dividends on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 after March 31, 2024, and on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 after September 30, 2024, at the Fixed Rates until they are redeemed.