Ladenburg Thalmann to Sell More Baby Bonds

It’s funny I was just reviewing the recently released Ladenburg financial results and thinking they were much improved from the past (they broke even which is a vast improvement) and then the company announces a new issuance of baby bonds.

They will sell new baby bonds with a ticker of LTSK (subject to change) and will use the proceeds for general corporate purposes.

The preliminary prospectus can be found here.

Typical terms apply – interest is not a qualified distribution, quarterly interest payments, optional redemption period starting 9/30/2021 with maturity in 2028.

The company currently has 2 baby bonds outstanding–1 with a coupon of 6.5% and the other with a coupon of 7%.  Additionally they have a monthly paying 8% preferred issue outstanding (LTS-A).

6 thoughts on “Ladenburg Thalmann to Sell More Baby Bonds”

  1. Long-dated bonds from a company with a large preferred hangover and an income statement that doesn’t show a profit very often. Seems like a lot more then 7% is needed.

    1. Hi Jay–because they are bonds I am thinking more around 7.25%–you would think higher based on their fundamentals.

      1. The Ladenburg Thalmann bond LTSL yields 7.25% at the current price of $23.95. You used to have their preferred stock in your Dividend Yield Hunter Blended Income portfolio. Any interest now in buying the baby bonds?

        1. Hi Andrew–yes I may buy some–not against it even though their financials leave a lot to be desired, but like many issues they are fine until the economy heads south (when???) then things could get dicey.

  2. I bought some CHSCL today, it’s down 1.50 per share from where it was a month ago. No idea how much the China tariffs will impact them though.

    1. Hi Jacob–I would like to be back in them–haven’t been for a while, but I need the right price. Their last financial report was improved from a year ago. My guess is they don’t have much China exposure directly, but obviously with the farm economy being weak they have an indirect exposure.

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