Cincinnati Bell Calls $50 Convertible Preferred

In connection with the just completed acquisition of Cincinnati Bell (CBB) by Macquarie the $50 convertible preferred shares of CBB have been called for redemption on 9/22/2021.

This lowly preferred (rated CCC/Caa1) was issued way back in 1999. Over the years I have owned this one, but not recently.

The company press release is here.

This information was posted in the Reader Alerts page by A4I and HankLA.

15 thoughts on “Cincinnati Bell Calls $50 Convertible Preferred”

    1. divvy is 84c/quarter (remember $50 par here) so accrued of 70c is about right or even a bit low.

  1. This is incorrect. They used a clause in the indenture that allowed them to call without a notice period.

  2. I AM NEW TO THIS IS THIS THE RIGHT LINK TO ASK ABOUT MEDLEY LLC TO VOTE ON CLASS 3 AND CLASS 4 FOR CLAIM HOLDERS ON CHAPTER 11 BANKRUPTCY WHAT DO ALL YOU THINK WILL HAPPEN THANKS JOHN S

    1. John–probably better in the sandbox–I’d move your question over there if I could, but can’t–maybe you can paste over there.

  3. Sorry for posting this in multiple places but this seems like the best spot to ask this question:

    Does anyone understand how they’re getting out of their promise to provide 75 day redemption notice? They said that in an SEC filing

    What will happen to the 6 3/4% preferred shares and the depositary shares representing interests in such 6 3/4% preferred shares in the
    merger?
    A: If the merger is completed, each 6 3/4% preferred share and depositary share representing one-twentieth of a 6 3/4% preferred share issued and
    outstanding immediately prior to the effective time of the merger will remain issued and outstanding immediately following the effective time of the
    merger.
    After the effective time of the merger, the Company will be required either to (i) offer to repurchase the 6 3/4% preferred shares on the date that is 75
    days after the Company gives notice of the merger for their liquidation preference of $1,000 per share

    1. LI,
      I guess the devil is in the details. I would point to this wording in the announcement from today:

      “The Transaction, which was originally announced on March 13, 2020, was approved by Cincinnati Bell’s shareholders on May 7, 2020. The completion of the Transaction follows the receipt of all necessary regulatory approvals and satisfaction of other customary closing conditions. ”

      I think this is probably how they are defining “the effective time of the merger”. It almost sounds like the completions of “The Transaction” and the “Completion of Acquisition” are two different events and the earlier is what they used to satisfy the 75 day stipulation, but I am not entirely sure as I didn’t review all of the documents/filings.

      1. They used a similar reasoning to call the QTS-A preferred. They used the date in June of the merger announcement and not the date the shareholders approved the merger. But then I could be wrong

        1. This is incorrect. They used a clause in the indenture that allowed them to call without a notice period.

      2. “I think this is probably how they are defining “the effective time of the merger”. ”

        Effective time of the merger is used elsewhere in their filings and in those instances refers to the closing of the transaction. I think they straight-up screwed up somewhere. Either in stating they will provide 75 days notice (which is odd) and/or in ignoring that stipulation. Wouldn’t be the first time I’ve seen a company screw up in this way. I had a big fight with Atlas about their screw up in the documentation related to the ATCOL exchange. GSL screwed up something with GSLD and I took that fight all the way to the CEO who eventually personally wrote me a check that he mailed from London.

        1. Landlord, I like your GSL story. Kind of confirms my viewpoint GSL is a decent outfit. The GSL-B has been one of biggest high yield holds this year. Despite its relative call anchored status they have several times this year issued more GSL-B at the market above call price.

        2. LI – not asking about the amount, but out of curiosity and if you’re willing to share, what was the reason for GSLD check being sent to you by the CEO not the company? What purpose? In other words, was it for something that should have affected all shareholders but ended up only being paid to the squeaky wheel?

          1. Here’s the GSL story.

            Company declared the first ex-div for GSLD on a certain date. On the ex-div date, I sold shares for a div capture. Well, turns out the company screwed up the ex-div declaration and they changed it so it would be aligned with the prospectus. Now I was no longer entitled to receive my div for the shares I sold. I contacted IR. I sent in a bunch of documentation proving I owned the shares and sold them on the original declared ex-div. For whatever reason, the issue got bumped up to the CEO. The check I received from GSL was signed by him (real signature, not a stamp). He treated me very fairly and I told him I would tell everyone how well they treated me. Here’s the email he sent me:
            *******
            Thank you for contacting us about your investment in our 8.00% Senior Notes due 2024 (the “Notes”). We regret that there was an inadvertent error in the record date, and we will pay an amount equal to the interest on the Notes you held as of January 15, 2020 and sold before the close of trading on January 31, 2020 and on which you expected to receive interest on February 29, 2020. Based on the documentation and information you provided to us, you claim to have sold XXX of such Notes.

            Please would you also complete (fill in the number of Notes held on January 15 in #1 date, sign and provide the address for payment) and return to us the attached Certification and General Release, and we will, in turn, promptly provide payment to you in the amount of $XXX. Returning by email is sufficient.

            We appreciate your continued interest in Global Ship Lease.

            Kind regards
            Ian Webber
            Chief Executive Officer

            1. GSLD that’s shareholder (or note holder) service! I had a similar circumstance happen where some little Canadian company moved their ex date due to some mixup with their exchange the day after it was supposed to go ex. I had a similar exchange with the company executive and they wired me the amount I had expected to receive after providing proof of ownership and sale prior to the new ex date.

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