Great Ajax (NYSE:AJX) is selling more $25 convertible notes which have a maturity date in 2024. This is a ‘reopening’ of a previous issue and is not a new issue. The company had sold 3.5 million shares in April, 2017 and then sold another 820,000 in August, 2017.
These notes (NYSE:AJXA) have a 7.25% coupon and have performed relatively well since their initial issuance in April, 2017 and are currently trading in the $25.16 area. A chart on the issue can be seen here.
NOTE–AJX is somewhat of a specialty mREIT in that they buy ‘reperformng’ loans at a discount. What this means is these were loans 90 days or more past due and which the borrower began payments once again. While the company has had decent performance it is not something one wants to hold when unemployment begins to rise as I believe those previously in default on loans are more likely to default again (just my anecdotal observation-I have no data to support this thought).
These notes are unrated and we consider them junk.
UPDATE–The company is offering around 640,000 shares (notes) at 24.69.