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$30,000,000
GREAT ELM CAPITAL CORP.
% NOTES DUE 2029 GECCH incoming
https://www.sec.gov/ix?doc=/Archives/edgar/data/1675033/000119312524216009/d683612dn2a.htm
Thanks J, I might be interested in that one.
Once again- 2 shares of SLMNP went for $943… something afoot here?
Fat finger x2 in a week- seems unlikely, but possible.
Maybe just rate cut expectations. Doesn’t look like a default is likely to happen.
Have 10 @ $925 for sale but no biters. It must be movement between different accounts within the same broker.
US Bank Bonds Today…
JPM
* 48130CRV9, 5.5% Coupon, Senior, A-/A1, Price 100.35
* YTM 5.471% 9/9/44, YTC 5.311 9/10/26.
Citigroup
* 17290AD49, 5.4% Coupon, Senior, A3/BBB+, Price 100.10
* YTM 5.39% 8/30/39, YTC 5.35% 2/28/27
So if rates go lower, these will probably be redeemed in a couple years. If rates go up, you’ll lend them money for 15+ years for below market rates. What a great deal! (sarcasm font)
Just like many preferred stocks…when rates go lower, many preferreds will be redeemed at first call & when rates go higher, count on loaning companies money for below market rates potentially for perpetuity…
No, not just like preferreds. These don’t have the potential for large capital gains, right? That’s kind of a big difference.
MANY of the 3-4% preferreds from the 0% FED COVID era have major capital losses for those that bought back then…I prefer term preferreds & corporate bonds with lower risk, lower reward…BUT with an actual maturity date. Your risk tolerance is different & I respect that DW. Best regards!
Since you mentioned major capital losses due to rising rates…What’s going to happy to a 2044 maturity bond if rates go up?
Term preferreds won’t go up in price much. Those old perpetuals much below par have room to grow if the stars align. That’s why some of them don’t pay much more than the termies. As a trader I lean toward the higher volatilty perpetuals though I trade both types.
The issue with these is the quick call option for the issuer paired with the long maturity date. Someone buying these is taking all of the same long duration interest rate risk but without any of the possible capital gain upside. It’s a lose-lose investment. Rather than purchasing these lose-lose issues, I’d suggest thinking about just sitting in cash and then you could be liquid in case asset prices fall significantly.
They pay a lot more than cash that’s not a lose. The only real loss is default. Rising interest rates if they happen may be worse than what you paid for but rarely worse than cash if they keep paying.
Fine with me when they are paying higher dividends to retain the option of calling. If you want long term safety accept a lower divvy instead of rolling the dice in exchange for higher payout.
Conifer Holdings (CNFR) just sold its Insurance business and changed its CEO.
They got a publicly traded senior unsecured 9.75% BB (CNFRZ) due 2028 quoted at 22.00. I just bought some on the assumption that after the sale cash balance far exceeds their outstanding debt, so they will be servicing the BB (for some time). NO investment advice, DYODD.
Bloomberg…
* B. Riley confirms talks on asset deals to cope with debt
* Oakmark is near deal to buy majority stake in two B. Riley units
* Big Lots files bankruptcy
They can rebrand as Broke Lots. Their business is buying overstocks cheap and selling cheap. Apparently it’s getting harder for them to buy cheap. Ollie’s still finds a way.
I thought a lot of places like TJ Max and Ollie’s in many cases were just making their own cheap and inferior merchandise in many cases. They just pay to use a brand and slap it on if they want it to look “fancy”. The days of finding a ton of overstock are not as easy as the past with how companies operate.
So using TJ Max as an example they make super cheap shoes and just pay Nike for the brand they slap on it. They are nothing like Nike bought at the Nike Store. The list is endless of these types of situations. From shoes, to shirts, to socks, to home items, etc… That is how these stores are ran now days.
RILYM closed up 18.70% today and closed at $20.88. The chances that RILYM will pay in full have gone up considerably. Management just needs to dot the i’s and cross the t’s on the proposed deals. If they do that in the next few weeks, RILYM should jump up back above $24.
NewtekOne, Inc.
% Fixed Rate Senior Notes due 2029
NEWTH incoming
https://www.sec.gov/Archives/edgar/data/1587987/000158798724000179/prospectussupplementsept20.htm
J any indication they will use the proceeds to call any of the other BB’s ?
“The net proceeds from the offering will be approximately $ , after deducting the discounts and commissions payable to the underwriters and estimated offering expenses payable by us (and assuming the underwriters do not exercise their option to purchase up to an additional $ aggregate principal amount of the Notes). The Company intends to use these proceeds for funding of investments, repayment of existing debt and general corporate purposes. For further information, see “Use of Proceeds” in this prospectus supplement.”
This is in the doc… Unfortunately, I do not have any extra info
Well J 2WR can hope the older BB’s are getting called
I see they continue to skirt the issue of addressing the extra layer of protection theoretically provided to NEWTZ holders alone, not this new issue for example, even though this new issue will be pari-passu. A quick review shows no mention of it in this prospectus whatsoever, yet it would seem as though as long as NEWTZ remains outstanding NEWT cannot issue new debt if it violates the 1940 Act restrictions as it pertains to asset coverage…. The latest 10q does say, “As of December 31 2022, our asset coverage was 169%. Although we are no longer regulated as a BDC, certain covenants in our outstanding 2026 Notes require us to maintain an asset coverage of at least 150% as long as the 2026 Notes are outstanding,” but note they DO NOT AND HAVE NOT UPDATED their asset coverage ratio since 12/31/22. Are they in violation? I do not have the abilities to say. But how can it not be material enough to even be mentioned? Yeah, I know, after all this time I should just let this go, but if NEWT can ignore it by not continuing to update their coverage ratio, then what’s to say the 1940 Act asset coverage ratio is toothless when it comes to protection all BDC noteholders?
2whiteroses, NEWT continues to act like a BDC with borrowing money and using it for investing and funding operations. They are in a growth mode full steam ahead while clouds gather on the horizon with a possible storm brewing of a recession. They are acting more like a BDC than a bank holding company. Do they even have depositors like a normal bank?
https://www.newtekbank.com/ note they’re still offering 5.25% high yield savings
On September 4, 2024, the Board of Directors of Cyclacel Pharmaceuticals, Inc. (the “Company”) passed a resolution to suspend payment of the quarterly cash dividend on the Company’s 6% Convertible Exchangeable Preferred Stock CYCCP (the “Preferred Stock”) scheduled for November 1, 2024. The Board of Directors will continue to evaluate the payment of a quarterly cash dividend on a quarterly basis.
https://www.sec.gov/ix?doc=/Archives/edgar/data/1130166/000110465924097731/tm2423533d1_8k.htm
Just checked their IR site.
Their press release page trumpets their attending the Wainwright conference, but nothing about this, which is in a 1 line SEC filing….
That conference is turning out to be cursed.
One of the other participants fired their CEO a few months ago and just published this morning that they have given up looking for another one. That one is SAVA, and anytime you can’t find a CEO, that is a red flag bigger than the ChiCom’s flying over the forbidden city in Beijing…so this is probably a case where everyone knows the winning lottery ticket number, they just don’t know when it will be drawn.
So if anyone is looking for the potential of astronomical returns, buy a few bucks of very cheap puts every week on that one until you hit the jackpot.
Not investment advice, DYODD….