Global Net Lease Prices Preferred Issue-UPDATE – OTC Ticker

FINALLY the OTC Grey market ticker has been posted. It is GBLNP–of course now you have to wait on your broker to update their systems.

Diversified triple net lease REIT Global Net Lease (GNL) has priced their new preferred.

The issue comes with a coupon of 6.875% and it will be cumulative, but non qualified.

This is unrated–they will sell 3 million shares plus 450,000 more for over allotments.

The issue WILL trade on the OTC Grey market–likely tomorrow, but the temporary ticker has not been announced–likely one of the folks will post it here in the morning the minute it is announced.

I may/may not have a personal interest in the issue–probably only if it trades at $24.75 or at least below $25–then our interest might only be for a flip.

The pricing term sheet can be found here.

18 thoughts on “Global Net Lease Prices Preferred Issue-UPDATE – OTC Ticker”

  1. There was no advantage Buying early on this issue. What a weak opening. If we are lucky to see this rise to 26 area this management will issue new shares. Something to be aware of. ATB.

  2. Last trade on this was 24.53 after hours. Must be institutions because retail OTC doesn’t happen in extended hours.

  3. I just bought it at 24.80 at TD. Had to hound them for 2 hours to get in the system. 24.80 was the ask price so I took it. Institutions bought in the 24.50’s and ‘60’s.

    1. I tried 10 minutes before the close at TD and no luck. I called and they checked with the fixed income trade desk and they said it was not available to trade. I can get a quote it the snap ticket but when I try and place an order it comes back with symbol no found.

      1. It showed in the snap ticket for me but was un-tradeable. The trading desk got it for me with 1 min. To close.

  4. Since there is an existing GNL issue there may be a pair trade opp here. depends on where the retail prices comes out. Stay tuned.

    Last trade of $24.57 is low, even for institutional.

  5. Be sure to check out management record, fee agreement, income statement and balance sheet before you buy.

    $28 million in management fees in 2018, and net income of $1 million. $615 million accumulated deficit at EOY 2018. It’s a value destroyer.

  6. Thanks Tim. I might buy this but they don’t have enough income to cover dividends, preferred dividends and expenses. Plus management sucks. I think I talked myself out of it, lol.

    1. Not saying GNL is some powerhouse or anything but the preferreds look safe — no debt maturities 2020-2022, and if you add up FFO+Interest Expense+Pref Div liability (even including this new B series) and then divide by Interest Expense+Pref Div (basically how much cash they have after all business activity divided by debt service and pref payments) you get 2.8-to-1, which is pretty healthy.

      1. Clncy – I’ve looked at their balance sheet a number of times and feel the preferred looks pretty safe as well. In addition to no debt maturities in the near future, many of their properties are locked in for long-term leases of 10+ years. The dividend on the common stock is clearly too high and may not be sustainable, so I clearly would not buy the common. However, I’m very comfortable with the preferred.

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