Once again Pebblebrook Hotel Trust (PEB) is coming to market with a new preferred issue.
The company just sold a new issue in May with a 6.375% coupon which has traded VERY strongly–now at $27.
The preliminary prospectus can be read here.
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5/4/2024
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If you bought PSECV/PSECF at SCHWAB continue reading
I just noticed that they charged me $25 commission when they repurchased under ticker PSECF ( PSECV was cancelled) . Called customer service and was told they would reimburse the fee b/c there was no reason to charge me….
Check your trade to see if you are charged too
If you bought it through the bond department then charge $25 automatically. You can get it reversed. That’s happened to me many times.
I bought PSECV on the stock exchange and didn’t get charged.
Will redeem 6.5% Series C which closed yesterday at a clean price of about 25.53. If you own it start doing some math. The bid/ask are too high right now.
I don’t get yield talk but comps suggest about 5.75%.
I was trying to sell my PEB-C when I saw the new issue notification but I didn’t like the bid/ask spread. Then I noticed that there was no volume until about an hour after the market opened. Do “they” put a hold trading until the market has had time to absorb the news? Just looked now and volume is way up, price is way down, and bid/ask is still very wide.
Companies that release market moving news are sometimes subject to a trading halt/pause as determined by the exchange. Call notices are (usually) not subject to this and as such PEB-C was not halted today.
The volume was zero for some time after market opened. The bid was better than the remaining payments to be received, meaning it was an immediate sale candidate.
Market has caught up and the “arb” is now gone.
When “calls” are announced in this way they often get overlooked for a few hours or even days. The issue is “redeem any” (I assume a 30-day notice) so this may get formally called in a few days and be gone by end of August.
Bob:
I sold 95% of my PEB+C position yesterday. You know the old saying:
“It’s good to be good, but better to be lucky.”
Thanks for the update on what PEB plans to do with the proceeds. It didn’t seem possible that they were going to sit around and do nothing while hotel REITs like SHO were issuing new preferreds at 5.7% rates (now trading at 5.54%).