Below are press releases from companies with preferred stock and/or baby bonds outstanding–or just news of general interest.
Nordic American Tankers Ltd (NYSE: NAT) – Report as per March 31, 2024 – Dividend is a top priority.
S&P Affirms Assured Guaranty’s AA Financial Strength Ratings with Stable Outlook
Customers Bancorp Announces Voting Results of Annual Shareholder Meeting
Ellington Financial Announces Estimated Book Value Per Common Share as of April 30, 2024
Well, a bit disappointing for SOHO. How often does that sort of thing happen? I’ll be watching to see how the SOHO preferreds respond in the morning…
It happens, but its never a great sign. I don’t know the SOHO story, but when they NT a Q filing that starts 5 day (calendar not business) clock. If they file the Q within a 5 day window then no harm no foul. If it goes past that window things get uglier and firms become restricted in terms of raising capital in public markets etc. In the worst case scenario a company can be delisted for not filing.
From the article – it looks like they are past the first 5 day window and into the second phase (if you will) this will impact their ability to raise capital in the public markets. The language in the press release is pretty much boiler plate.
Best for them to file.
You have to give those prefs credit for hanging in there and coming back from the depths of 2020! There were a few moving parts in Q1 they refinanced one property and extended another from Feb into April (with the expectation that this will be addressed during Q2). The are seeing 8+% rates on mortgage debt with the most recent refi. Could this be causing delays in filing? Possibly so. They also have a July mortgage maturity to deal with – again we will probaly see an 8% handle rate (best case).
There is another issue – loan covenents have been triggered on 2 mortages. Evidently this redirects most of the revenues (not NOI from what I can tell) from these properties to a fund which can only be used for these mortgages. That was disclosed in the 10K p50.
They are going to have to recapitalize the balance sheet somehow and one would hope it will be by offering new common equity which will be bad for common. They have an attractive portfolio of hotel properties.
The Series D has a current yield of 10.44% don’t have to worry about getting called thats for sure. The risk is there, but you are likely getting paid for it.
Good luck!