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JMP Group Comes a Calling

JMP Group (JMP) has announced a partial call of their 7.25% baby bonds that have a maturity date in 2027 (JMPNL).

There are 2 million shares outstanding and they are calling $10 million (400,000) worth of the shares effective 2/4/2021. The call is $25 plus accrued interest.

Shares were trading at $24 so this is incrementally profitable for holders.

The announcement is here.

Barbara was on this call on Reader Initiated Alerts.

4 thoughts on “JMP Group Comes a Calling”

  1. I just checked insider cow and saw that JMP insiders have been buying the common all year long, albeit around 800K in total dollars.
    I think I will buy up to 500 shares of that preferred at 24.52 ask.

    I should get 100 shares called at 25 and get .50 cap gain and the .45 div.
    Is that right?

    1. I would think you would get accrued dividend from date of the declaration, not a complete quarter. However there are greater minds out there than mine

      1. I think anyone buying today will miss the call.
        From news release:
        JMP Group Inc. instructed U.S. Bank National Association, as the trustee for the 2027 Notes, to distribute a Notice of Redemption on January 4, 2021, to all currently registered holders of the 2027 Notes.

        1. I have small positions of JMPNL. You are absolutely correct, Newman. JMP common has been increasing for a long time. One of the worty SA writer, Preferred Stock Trader, praised by Gridbird wrote an article for the Rida Morwa subscription on JMPNZ. I bought some and sold later for profit and plowed the proceeds to buy JMPNL. I tried to get some more JMPNL fractional shares. It is longer a bargain. So, I picked up some QRTEP instead. I hesitated to buy more of JMPNL because it has ceased to pay dividend to its common shareholders. Obviously my concern was unjustified. Small brokerage house still much better than hotel eREITs.

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