Gladstone Commercial Prices New Monthly Pay Preferred

REIT Gladstone Commercial (NASDAQ:GOOD) has priced a new preferred stock issue with a fixed coupon of 6.625%. The issue will pay monthly dividends.

The company plans to call their Series A preferred (NASDAQ:GOODP) 7.75% issue. This issue dropped like a rock yesterday–as it well should have given that it was trading at $27.50–I knew this would happen sooner or later. Additionally they will very likely call the Series B 7.50% (NASDAQ:GOODO) issue as both the A and B series are small issues and there will be plenty of proceeds from this new issue–this issue dropped like a rock yesterday as well.

It should go without saying that no one should be holding preferreds in the early redemption period at $27 or $27.50 range in this low interest rate environment (although there are a few exceptions). I had been watching these issues for a long time and wondered why Gladstone was waiting so long.

The final pricing term sheet can be found here.

34 thoughts on “Gladstone Commercial Prices New Monthly Pay Preferred”

  1. For those who bought this at Merrill yesterday, you’re out of luck with buying any more of it. They’ve placed it on the low priced securities list although it doesn’t meet the criteria according to the bozo platinum preferred rep who just looked into it. Typical Merrill.

    1. I just called Merrill as well. They got back to me in an hour and said that they changed it today because it is over the counter and they dont trade over the counter issues. My response is that you guys are late to the party because your competitors are already trading it.

      1. I bot multiple lots of it yesterday w/o a problem. Got good pricing as well. I’ve not talked to anyone on their highest tiers who knows what the hell is going on or why. They don’t at all seem to care that you are or may be, taking your chips to another table. Service has taken a nosedive the past few years in my experience and continues to just get worse. Right on par with Comcast or Verizon. Time to move to TDAM.

  2. I’m currently holding shares of Vereit Preferred F, which is also a monthly paid, REIT preferred yielding slightly higher, but past call. With VER/F trading consistently above PAR, past call, it feels like this is the perfect issue to transition to. Any thoughts?

    1. Mrinprophet, too be honest, that is exactly what I did today. Still have half my VER-F though. Its a pure guessing game on VER-F longevity. Its not like one is high quality top tier IG and other one not. Not a true apples comparison between the two, but close enough for my purposes.

  3. Got 1000 at 25.20
    I think you will see this at 26 in no more than 2 weeks
    Will buy more on a dip but doubt it will ever come

  4. New guy here. Been lurking awhile. Great site.

    I thought I read where someone couldn’t find a listing at Merrill. Tried to buy under the GOODN symbol, and instead found it listed as GLSDP. We’ll see if I get hit at 25.15.

    1. Carrera Jim–nice to have you here. Yes everyone should be looking under the OTC Grey market ticker for the next 4-5 days.

    2. I spend about 1/2 hour this morning with Merrill reps. Told them how frustrated I was watching competitor brokerages list new preferreds while they did not recognize them. It took a few phone pass-throughs but I got them to add GLSDP. It should be tradeable now.

      1. AzBob,
        I share your frustration. I’ve run up into them numerous times and nothing seems to change. Seems like the only option is to open another brokerage acct. Their access to new issues in which they don’t underwrite just keeps getting worse. Yelling at them accomplished nothing from my experience and I’ve done it at least 8 times now with various new issues.

        1. Yelling or complaining is not the answer. Instead I presented to Merrill a constructive business argument basically inferring an organization such as Merrill should not be offering inferior service to what competitors give. Must of caught the right persons attention because a half hour on the phone (conversation, put on hold, get next person, talk, put on hold, etc ) resulted in “our back office is adding the symbol now and you will be able to place an order in next couple minutes”. Hung up and executed a buy.

      1. It won’t show up on Schwab’s StreetSmart Edge. For these new issues you need to log on to the Schwab website, go to Trade, enter the OTC symbol.

  5. Interactive Brokers as big as they are, doesn’t allow trades in the gray market… Left out again :*(

    1. @TechGuy,
      Available as of today at IB. Yesterday evening I sent in request to add it. You can trade it if you have permission to trade on the otc. Otherwise you have to wait until it is available on the nasdaq.

  6. I dont have Gladstone posters hanging on my wall, but I bought a chunk at 25.13 and 25.15. Plan is to hold long enough to get a flip opportunity of modest gains.

    1. Thanks, Grid. Your endorsement means a lot. I followed you in but didn’t get quite as good a price at 25.20. I’m looking to flip above 25.50 if we get there in a few days or 25.80 if it takes a few weeks.

      1. I hope we are right, Landlord! Im thinking along the lines you are. Im not looking to hold these long term (it was bought with my hot money) and not looking to pull the pitch out of the ballpark. Just looking for a broken bat bloop single over the shortstops head here. 🙂

  7. Wish I had sold my very longstanding positions in GOODO and GOODP…BUT no crystal ball, and, being retired, if I had sold in the past (who knows when, as these have been beyond call since 2011,) I would have had to deal with replacement buys with similar good monthly (preferably) income production and relative safety that I could sleep with at night. GOOD”s various preferreds have provided that for me (I also own the 7% GOODM) Don’t cry for me as I still have come out way ahead, with some long term gains plus a large unfettered income stream. Life in the retired lane for me is about reasonable expectations of principal stability and income, income,and more income from swan issues that have excellent yields.

  8. For GLSDP ETRADE shows a last trade of 1000 shares at 20.15 with a bid of 100 at 20.20 and an ask of 20.30. Vol of 257.02k

  9. Just able to put a pre-market bid on TDAM under GLSDP, at 6.62% got a feeling this thing will fly out of the gate.

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