Below are press releases from companys with preferred stock or baby bonds outstanding – or just of general interest.
I have added in some earnings reports from some smaller banks to get a ‘flavor’ of where they stand relative to commercial real estate loans.
Oaktree Specialty Lending Corporation Prices Public Offering of $300,000,000 7.100% Notes due 2029
UMH PROPERTIES, INC. REPORTS RESULTS FOR THE SECOND QUARTER ENDED JUNE 30, 2023
GAMCO Investors, Inc. Reports Results for the Second Quarter 2023
Runway Growth Finance Corp. Reports Second Quarter 2023 Financial Results
Synchronoss Technologies Reports Second Quarter 2023 Results
Franchise Group, Inc. Announces Second Quarter Fiscal Year 2023 Financial Results
Conifer Holdings, Inc. Announces Closing of Exchange Offer
Assured Guaranty Ltd. Reports Results for Second Quarter 2023
Babcock & Wilcox Enterprises Reports Second Quarter 2023 Results
Jackson Announces Second Quarter 2023 Results
Maiden Holdings, Ltd. Releases Second Quarter 2023 Financial Results
New Fortress Energy Announces Second Quarter 2023 Results
Not to mention money raised in the public markets when CNFRZ starts trading…and they’ve made a good start by reducing the amount they need to redeem CNFRL by 35% two months before maturity.
CNFRL – It looks as if the exchange offer was a total bust…. They were offering to exchange all CNFRL 6 3/4 ’23 for 9 3/4’s due 5 years out. They were also offering 25mil additional of 9 3/4’s Only 25% of CNFRL owners took the offer and they raised only $1.7 mil from new buyers.. So what happens next for CNFRL? Where’s the money going to come from to call what wasn’t exchanged?
25% Ouch
I have held this issue off and on over the last few years profitably. Company performance would be called mediocre at best. They really just need to sell out or find better management (quick).
I sold my remaining shares after hearing of the ridiculous exchange (IMHO). The higher cost of capital will really hurt a company like this. I think that this could be the “straw that broke the camel’s back” on the road to Banko. No more kickin’ the can on this one.
25% exchanged plus another 7% of new money is a decent amount of early sales and I’d guess the remaining ~$17M will come from investors when CNFRZ becomes publicly traded. Is there some reason why you think they need to sell this note out before then? 🤔
The press release says they “closed its previously announced offer to exchange (the “Exchange Offer”) its outstanding 6.75% Senior Unsecured Notes due 2023 (the “Existing Notes”) for 9.75% Senior Unsecured Notes due 2028 (the “New Notes”) to be issued by the Company. The Exchange Offer expired at 6:00 p.m., New York City time, on August 1, 2023 (the “Expiration Time”).” They do go on to say the $25 mil offer is still ongoing on a best efforts basis, so anything is possible, but this issue has been in the works already since June 26th without the yield reachers jumping on it yet. It certainly feels as though CNFR would be very optimistically thinking to believe they cash they need will come from a best efforts marketing going forward. imho of course
They have enough cash on hand and assets on their balance sheet to retire the old notes even without demand for the new notes though.
I suspect you’re probably right and they’ll make it through, but the market’s response to the exchange and the new money offering certainly would make me extra thankful that I got paid at maturity if I owned CNFRL.
Yes, I get it, but this is not a bet on the prosperity of the company – its a bet that a questionable company has just enough to redeem a debt obligation.
I’ve been known for a willingness to pick up pennies in front of a steamroller on anticipated called (or maturing) bonds with dingy reps but this is one steamroller I chose tnot to get in front of….. I’ve got one that gives me the same amount of agita right now in FRGAP, and that’s enough…. FRGAP is conditionally called for 8/18 provided their deal to go private gets voted thru on the 17th.. If the deal blows up, the risk, just like CNFRL, far exceeds the potential gain, but I believe the deal has to go thru given it’s got the prior CEO and B Riley behind it…. Ha! Famous Last words… Good luck with CNFRL… odds are good I suppose… but that other shoe that’s there to drop is significant in both cases….
Amen
They apparently closed the old notes successfully – final interest payment and redemption proceeds were posted by at least one major brokerage house today (10-2-2023)