Below are press releases from companys with preferred stock or baby bonds outstanding – or just of general interest. Once again I am adding some small bank earnings in during earnings season.
Vornado Announces Third Quarter 2023 Financial Results
Apollo Commercial Real Estate Finance, Inc. Reports Third Quarter 2023 Results
Ready Capital Corporation Announces Third Quarter 2023 Results and Webcast Call
Medallion Financial Corp. Reports 2023 Third Quarter Results
Medallion Bank Reports 2023 Third Quarter Results and Declares Series F Preferred Stock Dividend
Great Elm Capital Corp. (“GECC”) Schedules Third Quarter 2023 Earnings Release and Conference Call
AMG to Announce Third Quarter Results on November 6, 2023
Triton International Declares Quarterly Dividends on Preference Shares
SITE Centers Reports Third Quarter 2023 Results
Redwood Trust Reports Third Quarter 2023 Financial Results
Two Harbors Investment Corp. Reports Third Quarter 2023 Financial Results
Office Properties Income Trust Announces Third Quarter 2023 Results
Arch Capital Group Ltd. Reports 2023 Third Quarter Results
Public Storage Reports Results for the Three and Nine Months Ended September 30, 2023
Harrow Will Release Third Quarter 2023 Financial Results on November 13, 2023
Prospect Capital… $15.87 a share…oof…
The corporate Treasurer doing cartwheels…
PSEC A from FIDO
“Prospect Capital Corporation Announces Launch Of Cash Tender Offer For All Of Its 5,882,351 Shares Of Outstanding 5.35% Series A Fixed Rate Cumulative Perpetual Preferred Stock”
Who, in their right mind, would accept that offer? Someone that bought some for $2/sare?
As a holder of this issue, I would like to know why you made that statement.
This is not callable until July of 2026 and with a paltry 5.35% non qualified dividend to boot.
In todays rate environment perhaps to proceeds can be used to generate more income and some capital gains as well.
I appreciate any other views on the offer.
HR,
I will happily give the other side to this “offer”. I nibbled at this issue when it first came out, then nibbled again on its way down. It was ahead of the curve this PSEC-A, a real trendsetter, as it was a perpetual pref low coupon that tanked before any other issues tanked, and before interest rates started to rise. It was a lead ballon right from the point of launch..which lured some of us (me) to keep on nibbling on its way down…
As a result I have a 3/4’s position (for me 600 shares) which are significantly underwater. If I was to take this offer, I’m not sure I could redploy the proceeds adequately to make up for that loss.
Being more of a buy and hold sort, I think Im stuck with it, at least until the interest rate picture changes significantly. As long as it pays, and even though Im only getting around 6% yield on cost.
Does anyone feel this is the wrong approach? Should I take the loss and look to put the funds to work somewhere else? I know some have v strong anti Prospect sentiments..
Consider this, Adrian – PSEC-A is up 11% today strictly because of this tender… What’s the price going to be one month from now once the tender comes and goes? Are interest rates going to move significantly lower in the next month? Are the other PSEC preferreds that might be used to measure comparable value going to change? Obviously not considering taxes in this equation, it seems like a pretty easy decision if you want to own PSEC preferreds for any possible reason to sell A and buy another PSEC issue to replace…. Of just sell now in advance of the tender and look to repurchase what’s not tendered after its completed. There’s no particular reason to believe the price will hold once the tender’s out of the way. Personally, I’ve never been a fan of PSEC, but I bot A today at 15.75 TO tender – easy pickings for the picking up pennies crowd..
> Does anyone feel this is the wrong approach?
I do think it is the wrong approach, actually. You’re making your decision based on the facts that 1) you already own it and 2) you’re down money.
But let’s think of it a different way: if you didn’t already own this thing, would you buy it today? If they answer is “I’m not sure,” fine, maybe you should hold it. If the answer is “hell no,” you should probably sell.
Also keep in mind–it’s better, from a tax perspective, to realize losses earlier and realize gains later.
It’s in the details. it’s actually $16 based on hypothetical settlement date. The other thing to keep in mind is they have prospectus for notes showing that I can’t imagine in this environment staying at par. They may be able to double dip on those too.
NewToThis:
My guess is they hope some might be looking to take some losses before year-end to offset realized gains during the calendar year 2023.
This is a crap BDC that trades for $5+/share. So many better preferreds and baby bonds to own in the current environment than this junk.
So what is going to happen to many of these BDCs when the high-interest loans they have granted to smaller companies can’t be refinanced upon maturity? Will the BDCs “extend and pretend”?