As noted yesterday KKR Real Estate Finance (KREF) has reopened their 6.50% perpetual preferred issue (KREF-A).
The company sold 4.4 million shares with another 660,000 available for over allotment at $25.13/share.
This will mean there will be at least 11.3 million shares outstanding.
The pricing term sheet can be found here.
I bought 1000 KREF-A at the open at $25. Not sure whether to just keep it or kick it out if it has a nice bounce. I have a high cash position so I’m tempted to keep it. The downside is that it has no maturity or float/reset date.
My order clicked at $25 too. Too bad for those who bot in earlier, but they got two nice divs and about halfway to the next one. In all sense the price should reassert. Will collect and see what happens during next swoon.
I have kept open sell orders on all my perp prefs that are low yield and suspect under my own stress test parameters. Only had one click…50 ! shares, but rest remain open. When there is another swoon I think some more will be a possible flight to quality sell opp?? At some point the question becomes okay got cash, now what to do with it? Trying to automate my responses, otherwise if I use my own animal sense I would buy basic foodstuffs (like the idea of trading cheap whiskey , cigs and wine when no one can get it) and other strategic goods.
I would be interested in comments for the CPA/Financial Guru’s/ Bankers out there on this company. I own 3,700 shares from the original issue. I’ve tried calling them with a couple of questions but they DO NOT return investors phone calls. Trying to decide if I want to keep this company for the long haul or not.
Chuck:
Try emailing the investor relations director at KREF with your questions. I have done this numerous times with different companies over the past few years and they always get back to me with a response. Good luck.
IR Contact
Jack Switala
KREF-IR@kkr.com
Thank You Rob in Vegas; I will give it a try as it can’t hurt.
Chuck, Staged pruning with a few stepped open sell limit orders at different prices, watch div dates. Set GTC dates manually. Tools of the Trade. Let nature take it course.