Primo Water (NASDAQ:PRMW) which purchased Glacier Water Service a couple of years ago is selling common shares with the intention of “paying down debt” and refinancing the balance of their debt.
While it is not known for certain if the old Glacier Water Trust Preferred (NASDAQ:GWSVP) shares will be called it is likely that the 9.06% coupon is a target for this move. REMEMBER that trust preferred stock is essentially debt as the Trust bought subordinated debt from Glacier and this dividends received are treated as interest.
Shares are trading at $26.75 so there is plenty of downside to $25 (plus accrued interest) if I was a holder I would look to ‘sneek’ out ASAP.
While there is NO GUARANTEE the old Glacier Water Trust shares will be called, there certainly is an intent by Primo to reduce rates.
The preliminary prospectus for the common share offering is here and vague references to calling debt and refinancing can be found in the “use of proceeds’ section.