Headlines of Interest

13 thoughts on “Headlines of Interest”

1. Pitney Bowes, PBI common printing new highs on ER. PBI-B sr note ex 11/22 DYODD

   Happy Friday

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   1. At 21.85 last trade on PBI-B 6.70 due 3/7/2043 YTM = 8.16%… B/BB-. PBI also has outstanding CUSIP 72447XAB3 5.25% 5.25% due 1/15/37 B3/B. I think both are described as senior notes, however, the different ratings seem to stem from the fact that PBI-B also carrying a guarantee of a subsidiary and 72447XAB3 does not….. Yesterday, someone sold 226 shares of CUSIP 72447XAB3 to a dealer at 61.25 to yield 11.13%.. Those bonds have yet to resurface on the offered side but bare in mind the spread between bid and asked has been gigantic on this issue. Last buys have been around 64 to yield 10.55% YTM. So if you believe in the turnaround story on PBI, are willing to give up liquidity vs, PBI-B, and are a buy and hold kind of person, keep an eye on an offering to surface on CUSIP 72447XAB3. You could pick up an additional 240 basis or so for a shorter maturity with slightly lower official ratings….. I own a small amount much cheaper.

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      1. Ty 2wh…cusip ending AB3 original issue size 500mil has just ~36 mil remaining outstanding per my sources. Submitted “offer wanted” this morning but got no bites. I bot 15k of this issue last August on your or someone here mention at ~60.5 Thanx to all here. Best

         From ER:

         Balance Sheet Deleveraging: Progress on exiting GEC, reducing non-essential expenses, and optimizing cash positions has positioned the Company to pay down debt in the coming quarters. The Company has more than $100 million of excess cash on the balance sheet that can be used to reduce debt. Discussions are ongoing with the Company’s current and prospective lending partners to identify ways to strategically deleverage on favorable terms.

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2. Has anyone looked at the tender offer for KIM-N (the acquired RPT 7.25% busted convertible)? It looks like Kimco may be trying to force a tender at $62 (~5.85% yield at that price) with the threat of a shareholder vote on a lesser amount next year. Thoughts?

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   1. Here is the tender document:

      https://reorgdocumentlibrary.broadridge.com/Client/Client?data=1124/E49688/49446R687/c

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      1. @David, what’s your impression?

         Much easier to read the pdf download here: https://investors.kimcorealty.com/news-events/press-releases/default.aspx

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         1. I really don’t appreciate the arm-twisting by KIMCO, but I guess I’ll probably tender my shares. I never intended it as a long term position.

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3. – Valley – hey our stock is up 15% in a month! And it closed at 10.52 yesterday!
   – Valley – first press release 5.22 PM – we’re offering stock to shore up our regulatory capital, but we’re not going to tell you how many shares so you won’t get nervous or trade after hours.
   – Valley – next press release 10:28 PM – Oh, its 42,780,748 shares at $9.35, a little under our $10.05 close today. Underwriters option 6,417,112 shares more.
   – Wondering if this is the start of a trend – banks doing big capital raises after the market’s post-election pop. Hey it makes the preferred safer. JMO. DYODD.

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   1. Bear, you know the area better than I do, but I dumped the floating preferred a little after they floated and the bank scare along with the risk in the commercial REIT market. What caused me to do this was when I found out they were also selling shares in an overseas market. Wouldn’t surprise me if this share offering was also being offered to investors overseas.

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4. Two additional earnings……
   Brighthouse Financial Announces Third Quarter 2024 Results
   https://finance.yahoo.com/news/brighthouse-financial-announces-third-quarter-211500019.html

   Saul Centers, Inc. Reports Third Quarter 2024 Earnings
   https://finance.yahoo.com/news/saul-centers-inc-reports-third-211300339.html

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   1. Thanks Steve, I follow both. I recently booked some profits on BHFAL this week. Just lucky. I bought at 21.95 sold at 25.05 before earnings came out. I don’t quite understand their earnings report, overview it looks like they did worse than 3rd qtr last year but with stock buy backs and less stock outstanding makes it look like more profit per outstanding share is my guess. Costs up, must be paying higher commissions to sales people for selling annuities. I bought their preferred with money from an inherited BHF IRA my parents had with them. It’s only paying 3% and YOC at the time of purchase of the preferred was 7% plan on closing that IRA in the new tax year since both of us will be retired.
      I also hold BFS preferred but not selling. Actually have a way out of the money limit order to buy more if there is any panic selling.
      GLTY

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      1. I also own or owned BHFAN and BFSpD.

         I finally gave up on BHFAN this week and sold my entire position after holding it for two years. I made a little money, but it just seemed like it wasn’t responding as well as the preferred market as a whole, and the reputation of annuities just seems to get worse and worse.

         I am not sure what to do with Saul Centers

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         1. dono, same here, but I have other BHF preferred with YOC of 7% so just holding. I wanted to free up a little cash. BFS the family has skin in the game and it is more than just a retail shopping center holder and is in a good metropolitan mkt. I am just holding. Before Covid I used to flip trade not anymore.

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