REIT Gladstone Commercial (GOOD) is calling the outstanding monthly paying 7% preferred shares (GOODM).
While this is not a huge surprise it does bring about a ‘teaching’ moment—at least for me and probably many others.
CR noted that a full call notice was received from Fidelity on this issue. This prompted a response from Rob in Vegas of “how does Fidelity learn about the full call of GOODM before Gladstone even issues a press release or files a SEC 8-K? CR responded that he/she has checked around for press releases etc. and found nothing.
From the above exchange mcg (who is knowledgeable on these things) chimed in–companies are only required to notify the depository and owners of record. Press releases and 8-k filings are NOT required, but done as a courtesy by the company.
Thanks to all who ask questions and in particular those who answer them–I made my first common stock purchase 50 years ago this fall and had not asked this question–nor did I know the answer.
Press release after the market close:
Gladstone Commercial Corporation Announces Conditional Optional Redemption of all Outstanding Shares of its Series D Preferred Stock
May 27, 2021 4:10pm EDT
MCLEAN, VA / ACCESSWIRE / May 27, 2021 / Gladstone Commercial Corporation (NASDAQ:GOOD) (the “Company”), today announced the conditional optional redemption of all of the outstanding shares of its 7.00% Series D Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series D Preferred Stock”). The optional redemption is contingent upon the Company having sufficient liquidity to complete such redemption on the redemption date, and the Company reserves the right to postpone or cancel any such voluntary redemption in its sole discretion.
Notice of redemption on a conditional basis has been sent and will be publicized with respect to the Series D Preferred Stock, with a conditional redemption date of June 30, 2021. The Series D Preferred Stock will be redeemed at a price equal to $25.1458333 per share, representing the payment of the liquidation preference of $25.00, plus an amount equal to accrued and unpaid dividends in the amount of $0.1458333 per share.
The Series D Preferred Stock (Nasdaq: GOODM; CUSIP No. 376536603) is held in book-entry form through The Depository Trust Company (“DTC”) and will be redeemed in accordance with the procedures of DTC. After the redemption date, shares of Series D Preferred Stock will no longer be outstanding and all rights with respect to such shares will cease and terminate, except the right to payment of the redemption price. Also, upon redemption, the Series D Preferred Stock would be delisted from trading on The Nasdaq Global Select Market.
Guessing which preferreds will be called when is a humbling experience. We expected GOODM to be called on the first call date = May 25th, so we sold it out of all accounts. Then they did NOT call it, so the second guessing begins: “maybe they are not going to call it shortly.” Just as soon as you convince yourself it will not be called, this call hits the wire today. Same on PSA-C and DTJ. In all three cases, they called them about one month after the first call date. Maybe companies are doing this on purpose for some unknown reason? Hard to think their financial picture has changed materially in the last 30 days.
https://www.gladstonecommercial.com/newsroom/press-releases/detail/402/gladstone-commercial-corporation-announces-conditional
Gladstone Commercial Corporation (NASDAQ:GOOD) (the “Company”), today announced the conditional optional redemption of all of the outstanding shares of its 7.00% Series D Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series D Preferred Stock”). The optional redemption is contingent upon the Company having sufficient liquidity to complete such redemption on the redemption date, and the Company reserves the right to postpone or cancel any such voluntary redemption in its sole discretion.
Notice of redemption on a conditional basis has been sent and will be publicized with respect to the Series D Preferred Stock, with a conditional redemption date of June 30, 2021. The Series D Preferred Stock will be redeemed at a price equal to $25.1458333 per share, representing the payment of the liquidation preference of $25.00, plus an amount equal to accrued and unpaid dividends in the amount of $0.1458333 per share.