3 thoughts on “It Didn’t take Long – Arbor Realty Calls All Old Preferreds”

  1. Well this sure is a far cry from RILY’s way of doing things… ABR announces a new issue on 5/25 with only a passing hint of calling preferreds in use of proceeds (“We plan to use the net proceeds from this offering to make investments relating to our business and for general corporate purposes, which may include the repayment of indebtedness or the redemption of outstanding preferred stock”) and then announces the full call the next day…

    RILY, on the other hand, announces a new issue (RILYK) on March 23 with SPECIFIC mention of using proceeds to call RILYG (“We anticipate using the net proceeds in excess of $100.0 million, if any, from the sale of the notes for the redemption of all or a portion of our existing 7.25% 2027 Notes as soon as practicable…”) and here we are 2 months later still enjoying RILYG accruals…. Not complaining, mind you, that’s for sure… RILY did the same thing with RILYZ…. It’s a nice pattern… I encourage them to maintain their foot dragging policy on each of their currently callable outstandings one by one.

  2. Dang, blew it again. After watching C pay and pay for a few years after I sold at neg YTC, I’ve held on to my B, thinking that higher coupons A and C might protect it for a while. Not in this low-yield world. Oh well, bought below par in ’13, so a good run, but where to put proceeds?

    1. To continue to get approx 7.5-8% on a half way decent preferred? I would like to know as well because anything paying that high coming out recently is not without a heavy dose of risk. You might have to settle for 6.25% thus this new ABR preferred makes a lot of sense.

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