Below are press releases from companys with preferred stock and/or baby bonds outstanding–of just of general interest. With earnings season over news is more minimal.
AIG Announces Launch of Secondary Offering of Corebridge Financial, Inc. Common Stock
Reinsurance Group of America Announces Pricing of Senior Notes
any idea why STOR bonds have been going down steadily ? Is the credit risk worth the 8% yield ?
STORE Capital, 4.5% 15mar2028, USD
CUSIP : 862121AA8
STOR Capital is now owned privately and its safety is difficult to follow.
On February 6, 2023 Fitch Ratings downgraded STORE Capital Corp.’s ratings, including its Issuer Default Rating (IDR) and unsecured debt to ‘BBB-‘ from ‘BBB’. Fitch has assigned ratings to STORE Capital LLC, which merged with STORE Capital Corp. as the surviving entity and assumed its debt, including ‘BBB-‘ IDR. STORE Capital Corp.’s IDR was withdrawn.
The downgrade follows STORE’s sale to affiliates of GIC and Oak Street Real Estate Capital and reflects the increase in leverage, secured debt and drop in unencumbered assets. While the increase in leverage is intended to reverse over time, it will remain above prior levels in the intermediate term. The Rating Outlook is Stable.
Store Capital announced that, at the concluded special meeting of stockholders, its stockholders approved the acquisition of the company by affiliates of GIC, a global institutional investor, and funds managed by Oak Street, a Division of Blue Owl. The transaction is expected to close in the first quarter of 2023, subject to the satisfaction of customary closing conditions. Under the terms of the merger agreement announced on September 15, 2022, among other things, the company’s stockholders will receive $32.25 per share in cash. Upon closing of the transaction, the company’s common stock will no longer be listed on any public market.
Hope that helps…
Everyone,
Here is the FWP term sheet for the new RGA note:
https://www.sec.gov/Archives/edgar/data/898174/000119312523160784/d475511dfwp.htm
Note that it pays semi-annually:
Interest Payment Dates
March 15 and September 15, commencing March 15, 2024
Further review of the prospectus (424B5 filing) shows they won’t trade on any exchange.
Page S-8 of the prospectus:
“We have not applied for and do not intend to apply for listing of the notes on any securities exchange or for quotation of the notes on any automated dealer quotation system.”
Private my daughter lived down there on the corner of Van Ness and Vallejo about 22yrs ago loved visiting and staying overnight walking around the neighborhood. She would put food out on the flower planter for the homeless and other neighbors did the same. Household items, even furniture they put out on the curb and someone or the homeless would take it away. They kinda brought it on themselves.
San Francisco people take this habit with them when they move out of SF. That’s how I know when someone new moves into the neighborhood that they are from there.
Union Bank Building on California St in the SFO financial district just sold for $65M compared to a value of more than $300M in 2019. Even the first mortgage lost value?
SF Business Times reports that 550 California Street office tower, purchased in 2005 for $105 million and listed in 2022 for $160 million, just went under contract for somewhere between $42.5-46 million. This is a press report of a contract price, not a confirmed closing. The SF Business Times is behind a paywall, but someone drew my attention to this report:
https://wolfstreet.com/2023/06/05/what-are-older-office-towers-worth-in-the-new-era-second-san-francisco-office-tower-sells-for-over-70-off-original-listing-price/
Per Park Hotels, I attended a convention and did the tourist thing in San Francisco in the early eighties. It was a beautiful city and pleasant visit. Hard to believe it has become what it has, especially knowing that it could easily have been prevented.
I had to take the Foreign Service exam in SF back in the early 80s and I spent a whole day wandering around. Loved it.
I have been based in the Bay area for decades and have watched the decline.
I have had to go into SF pretty regularly in the last few months.
Unbelievably bad.
Worse than New York in the 80s, which we called Calcutta on the Hudson, so SF has truly become Calcutta by the bay (with apologies to all south Asians).
Open air drug markets/drug use, homeless encampments everywhere, human waste, aggressive panhandlers and bold thieves (literally stealing the airpods off people’s heads), auto break-ins everywhere. I have had two idiots try to rob me just this year. The “progressive” city government just won’t do anything about it except talk.
Lots of companies are just leaving SF. SF Rents are high, it is expensive for employees (although I heard on the radio today that apartment rents are dropping pretty fast because of lack of demand), ridiculous taxes and regulation from the SF city government (on top of the ridiculous state taxes and regs). Even a lot of the nicest buildings are standing mostly vacant. I was in One Sansome St. (Citigroup tower) the other day and it is at least half empty.
We have had several overseas clients express an interest in potentially opening offices in SF as they expand into the US, and I always recommend they avoid SF and look elsewhere in the Bay area.
Private, I bet a few “Singapore Caning” outposts would eliminate a lot of the criminal problem rather quickly.
You betcha Grid.
The DAs in the bay area are really pushing “catch and release” – letting everyone out on pre-trial release. Enables the same criminals commit the same crimes every day. One of the key reasons petty crime is so high in SF and OAK (IMHO).
I lived in Singapore a couple of times over the years and it is an incredibly safe place. One advantage of having a totalitarian government.
Private, cool that you got first hand experience there. I think that is why they used to call it “law AND order”. Need a little order to back up the laws… But as long as I live in a small town I guess it doesn’t matter as much. My lady twice in the last month lost her keys only to find them in the car left unlocked in driveway. I’m no better, last month neighbor asked why I left garage door open overnight…I told him, it’s because I forgot to shut it and lock door from garage. It wasn’t like I was setting a trap for a criminal, ha.
Absolutely William P–I was there in 1981 and again in 1995–loved the city, now you couldn’t drag me there.