Ladenburg Thalmann Announces New Baby Bond

Financial services company Ladenburg Thalmann (NYSE:LTS) has announced the sales of a new baby bond.

The notes have a maturity date in 2028–a bit too far out for us, but we will have to see the coupon before we know for sure whether we have an interest.

Ladenburg has a 8% monthly paying preferred outstanding right now (LTS-A) as well as a 6.50% baby bond outstanding (LTSL) that was issued last November which is trading at $24.49 so it seems reasonable that the new baby bond should price at around 7%.

The preliminary prospectus can be found here.

We haven’t checked the Ladenburg financials lately, but the last we remember they are kind of ‘dicey’, so buyers should do their due diligence.

10 thoughts on “Ladenburg Thalmann Announces New Baby Bond”

  1. I remember when Tim added the LTS pfds to one of the Yield Hunter portfolios and wrote about was in the low 20’s then.. I bot some too.. I think around $22…rode it up to $25 collecting nice divs along the way.. and decided to book my nice gain. There were a lot of attractive alternatives so I put that money to work elsewhere.. I know mgmt. owned a nice chunk of the pfds at the time. I am surprised the company has not been bot out by another firm by now w all the consolidation in the biz. Bea

    1. Thanks for the reminder Bea. I’m guessing I held it for a number of years and then finally took a capital gain for whatever reason.

  2. There’s always been a vague claim that LTS is ‘dicey’ but no one has ever elaborated on it.

    The LTS-A preferreds became callable on May 14.

    1. Hi Larry–I will dig into it in the next day or two. I don’t remember all the details of ‘dicey’ but it had to do with continual acquisitions–but that is all I remember.

      1. I would dig into the archives on SA but with the new policy requires a paid subscription to see any articles older than 10 days, it would be pointless.

    2. This one just depends on ones risk level. Outside of WFC-J, which has to be the 9th Wonder of the World because it hasnt been called, there are very few “safe” 8% preferreds. This company is confounding to say the least…They have used LTS-A as a money printing machine non stop the past 5 years.. It started out as a 115 million, now its at 400 million which is over half the value of the common. They issue more to acquire companies and to pay the existing preferreds. When it does make a pitiful profit see what happens on the income statement after the preferreds are paid, not pretty as they dont generate profits to cover it. I dont know if they can ever make enough money to actually pay the preferreds now. And now they are on their second issue of debt thrown on top of the preferreds.
      They intentionally mislead which very much annoys me…Every year they send out releases of common shares they buy up…But ALWAYS at the end of the year there are more shares outstanding than before. They pull a few out the back door and shovel them in by the boatload through the front door. They never mention that. The balance sheet just mind boggles this amateur. One accountant went through it a couple years ago step by step and I wanted none of it…I remember he left it with LTS-A is a bug in search of a windshield. If you had backed out the goodwill, and company was liquidated, the preferreds wouldnt even get half their par value, I remember him showing.
      But yet it still lives… Its been a great ride for 5 years for holders, so what do I know…

  3. I’ve got some of the preferred A shares and have been quite satisfied with their performance. Common shares have been on the rise over the past year and even started paying a small dividend. All good signs from where I sit.

    1. Hi Citadel–I used to have the ‘A’ and was satisfied with the performance–don’t remember when or why I sold it–probably booked a capital gain.

      I hope I can review their recent financials soon.

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