In case you didn’t look at the ‘Headlines of Interest’ last night PS Business Parks (which is now privately owned) has once again made a tender offer for any and all preferred shares remaining outstanding.
Recall that they made a tender offer for any and all preferred shares (3 issues) back in November—at exactly the same price as the offer they made yesterday. You can read the offer here.
As I calculate it there remains about 30% of the original $755 million worth of shares outstanding.
I bought a ‘tracking’ 25 shares of the PSBZP 4.875% issue at $11.24/shares–my biggest gainer today at up 29%!! Too bad I didn’t buy 1000 shares, Anyway I am holdings them to see what happens–that was the intent of buying the original shares so I shall see it through.
The shares remain trading on the OTC market.
Blackstone did this in the 2008/09 meltdown.
I had a note of the company they acquired. It went Pinks, yet still traded, with low volume and very wide price swings.
And …. they never stopped paying the 8% / $2.00 / Yr. dividend on the Note through all of it.
My costy basis was around $5.00 / share – from advantageous buys when it fell hard and selling on 35 – 75% upswings before dropping back.
Yes, I keep GTCs open on everything!
About 3 or 4 years later when the econom recovered and rose nicely, Blackstone announced an IPO of the company.
Two weeks before it went public again, they called All outstanding Notes and Preferred at Par / $25 to clean upp the Balance Sheet prior to IPO.
Consider the probability of a similar action with PSB’s!?!?
I am holding several lots in various accounts.
Just sold a slice of the PSB-Z today @ $14.46z.
averaging down. Now around $10.50 – $11.00.
Will continue to – Wash, Rinse, Repeat. Likely far less frequency?!
Steven
Thanks for the perspective. I will say, there might be more opportunities for Blackstone to screw preferred holders versus noteholders.
Hi Tim, Do you think these will eventually go to the expert market, where we won’t be able to trade?