Compass Diversified Holdings Prices New Preferred

Compass Diversified Holdings (CODI) has priced the previously announced preferred.

The issue was priced at 7.875%, with 4 million shares being sold, with another 600,000 being available for over allotments. This issue will issue a K-1 at tax time.

I had originally thought this issue might be interesting, with a possibility that I might want a small position. But upon further review of the currently outstanding CODI preferreds I see no reason to rush into any purchase–CODI issues trade weakly.

The issue will trade immediately on the OTC Grey market under temporary ticker CMPSP.

The final pricing term sheet can be read here.

7 thoughts on “Compass Diversified Holdings Prices New Preferred”

  1. I believe the sr. unsecured bonds are B- which makes these preferreds CCC. Not sure that 7.9% is a good coupon for CCC when B+ rated IPOs are going for 7.3%. If I was going to buy a CCC preferred, I’d take a hard look at CBB-B. I know Grid doesn’t like it anymore but I haven’t known him to like CCC credits in general.

  2. CODI-B has tumbled to $24.77 today. I know the stock has traded weakly in the past (as low as $18) but for a buy-and-hold isn’t this a solid dividend play? They haven’t missed a payment, the coupon is high, first call is a long way away. If the price plunges due to general economic conditions, we’re still getting our dividend, right? Very much like to hear what others think on this and i’m always interested in the knowledge of this crowd. (full disclosure: i bought a small position and i am a buy-and-hold investor, usually of higher quality but sometimes dabble in the weaker issues).

  3. Just a heads up; I was able to buy shares to flip at Vanguard by giving their fixed income trader the CUSIP 20451Q401 and not the Grey Sheet symbol CMPSP @ $24.68 early this AM. My other broker Merrill Edge gave me a hard time saying “these shares are only going dealer to dealer and no retail investors can buy yet”; they were wrong.
    “There’s no way out of here, when you come in you’re in for good”
    David Gilmour
    Nomad

  4. Compass Diversified Holdings (CODI)
    In related news, insider Elias Sabo acquired 17,934 shares of the firm’s stock in a transaction on Monday, November 11th. The stock was purchased at an average cost of $22.24 per share, with a total value of $398,852.16. Following the acquisition, the insider now owns 585,549 shares of the company’s stock, valued at approximately $13,022,609.76. The purchase was disclosed in a document filed with the SEC
    In related news, insider Elias Sabo acquired 18,334 shares of the firm’s stock in a transaction on Wednesday, November 13th. The stock was purchased at an average cost of $22.02 per share, with a total value of $403,714.68. Following the acquisition, the insider now owns 585,549 shares of the company’s stock, valued at approximately $12,893,788.98. The purchase was disclosed in a document filed with the SEC

Leave a Reply

Your email address will not be published. Required fields are marked *