General Finance Announces Partial Call on Baby Bonds

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.

3 thoughts on “General Finance Announces Partial Call on Baby Bonds”

  1. 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.

    1. 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.

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