General Finance (GFN) has announced a partial call of their outstanding 8.125% baby bonds (GFNSL).
On 11/30/2020 they will redeem $57.2 million of the $77 million outstanding.
Shares are now trading at $25.16 and have a potential of 3 interest payments of 51 cents left before maturity on 7/31/2021–of course the balance could be called at any time. See the details here.
Maybe I will get a ‘taste’ to hold for as long as a little remains outstanding.
FWIW: noticed GFNSZ has begun trading on Fido, slightly under par.
Does anyone know when GFNSL shares will get segregated in shareholder accounts? Once that happens, I believe if you buy GFNSL on the open market, none of your shares will be part of the 11/30 call.
I’d be cautious here..GFN is redeeming 3/4 of the outstanding shares of GFNSL in November, something like 73% iirc, so there is a very low barrier to their redeeming the remaining shares prior to July 2021. If you’re going to buy, make sure you’re getting a good price close to par, otherwise you may end up eating some premium in Jan/Feb 2021.