Mortgage REIT New York Mortgage Trust (NYMT) has announced they will be selling a new issue of $25/share Senior Notes with a maturity date in 2029.
The preliminary prospectus can be read here.
The company has numerous outstanding issues of preferred stock which can be seen here.
Thanks to J for posting this issuance.
Their baby bond recently discussed on the Fidelity forum. I tried to dissuade for also do not feel sufficiently safe. The common was once over a $400 per share stock, now under $6 and dowe 40% this year, no profit per Morningstar past two years. Keep the 9%. Just my opinion of course. It of course may not default within 5 years but imo not worth the risk, better choices available.
Thanks Tacitus, a reverse stock 1-1/2yrs ago didn’t help. From Quantum
February 22, 2023 — the Company announced that its Board of Directors approved a one-for-four reverse stock split of its issued, outstanding and authorized shares of common stock (the “Reverse Stock Split”). The Reverse Stock Split is expected to take effect as of 12:01 a.m., New York City time, on March 9, 2023 (the “Effective Time”). Accordingly, at the Effective Time, every four issued and outstanding shares of the Company’s common stock will be converted into one share of the Company’s common stock, with a proportionate reduction in the Company’s authorized shares of common stock, outstanding equity awards and number of shares remaining available for issuance under the Company’s 2017 Equity Incentive Plan. The par value of each share of common stock will remain unchanged. The Company’s common stock is expected to begin trading on the Nasdaq Global Select Market on a post-reverse stock split basis beginning on March 9, 2023, under a new CUSIP number: 649604840.
The graph for the common is scary………..
Confirmed- new sr note- NYMTI is 9.125%
I’m out of this company without taking a haircut. It is a Hard Pass on this rather scary company for me. You will NOT sleep well a night owning anything to do with this company…
This is a dog with fleas. The stock is down 35% in last 12 months while the market has been strong. $500 mm market cap. Suggest not to bother with this stuff. These are the types of companies where one day you wake up and the bond is down 50% in price with risk of bankruptcy, with zero prior warning.
They’re all issuing these baby bonds instead of perpetuals these days. Slightly lower yield and less volatility with a redemption date. And higher in the bankruptcy stack for whatever that’s worth. Are the dividends section199A? I may do some swaps but inclined to keep most of my shares in the perpetuals.
Martin- interest (bond payments) don’t qualify for 199a, AFAIK, just dividends.
Perfect time to swtich my prefs to this new BB
Be careful. NYMT is one of the weaker mREITs.
prefs are weaker than BB