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CRLKP, which a few here follow, reportedly reduced its distribution for the most recent quarter – one of the reps at a brokerage told me:
“After double checking with our clearing firm […] CRLKP […] informed the DTCC to pay at a rate of $0.301174 instead of the usual $0.328125.”
I didn’t think a change of the quarterly payment was possible for this security (although they can temporarily suspend distributions), so maybe some type of error has occurred….
WTFCP – Since the discussions here a week or so ago, both WTFCP and M have actually drifted down a few cents… Don’t know why but with the likelihood of a call being so high on P on 7/15/25 due to the reset terms (5 yr + 6.507) a few pennies makes a big difference in YTC. At 24.70 where a floor seems to be forming on P, the YTC = 8.50%…. WTFC’s quarterly seemed decent but right now the common is being hit a bit, but still, this looks pretty attractive imho……
Bought some today as I missed out when it was originally mentioned and watched it go higher.
2wr, thank you.
I’m tracking too. Heavy volume – 506K shs so far (avg daily vol = 51.4K shs).
Being a month-end trading day, I’m wondering if there’ll be a bigger drop just before the close.
Oddly, it pumped at the close. I wasn’t intending to day trade it, but it was juicy enough for 1 day gain. Wait for it to settle back down and get back in.
Part of the game theta. I agree with everything you’re saying. I have a mix of floaters and fixed. Most of the floaters I have are plus SOFR and 3 to 4% mixed of 3 months to 5yrs. Yes they can drop in value and have a capital loss but off what? I bought a lot of these floaters when they were cheap and some don’t even reset until 3 to 5 years out. Who knows what rates are then. A few are term or BB so they will eventually come back to par. Look at the talk here on III everyone is trying to rush and buy something they can get a 7% to 6% return on right now.
I’ve been slowly accumulating on the few cent drops but it does seem penny ante. Better than sitting in cash.
CHSCN is down 1.4% trading at 25.45 and CHSCM is down 0.75% trading at 24.86, yielding around 6.9% and 6.78% respectively. Both seem like good values.
Thank you. Already owned L and O. Started a position in M since it is callable soon and under par while CHSCN could be called and you take a hit. This is CHS though so nothing makes sense.
Likely end of month volatility for preferreds due to PFF like in the past. I suspect the CHS pfds will bounce back again starting tomorrow.
Mark, doubt there’s any new information, but Tim commented in the past few weeks on their quarterly report that their income was down from the year ago qtr.
https://innovativeincomeinvestor.com/chs-reset-preferreds/
Theta, even if some of the CHS preferred reset to a fixed rate the rate is still decent. But you need to keep the farming sector in mind overall. AMD just reported a 900 million drop in sales and they are equipment suppliers, fuel etc. I am not saying CHS is in any trouble. But I would say it would be to their advantage to fix the rates on these preferred and not let them float.
Charles M – My personal take specifically on the series 2 & 3 is that they will be paid at the stated fixed rate. That link I posted was for a great reference point so folks can come to their own conclusions.
Frankly I’m avoiding floaters at all costs at this point and have been unloading as much as I can the last month. Unless you can get a great spread to protect the yield but that often means giving up credit quality as well.
As you know, the worst part about floaters is if interest rates rapidly start declining, not only does your effective yield distribution decrease but the trading prices of these securities also can tank. On the flip side those higher quality 6%er fixed perpetuals will see a nice bump in price.
Theta I hope your right! I’m underwater on some UEPEP I bought last year. Be nice if they moved up in price.
theta-
You said, “As you know, the worst part about floaters is if interest rates rapidly start declining, not only does your effective yield distribution decrease but the trading prices of these securities also can tank.”
Do you have data to support trading prices tanking? Suppose a 9% floater is hit with 300 bps of rate cuts. The resulting 6% yield will be much better than any new issue and as good as many older fixed issues. Where will the market price it?
OTOH, are your fixed issues call protected. If FFR drops a lot, won’t there be a rush to replace expensive debt with cheaper?
Yours truly,
Clueless
I am pretty sure what theta was saying is that they do not float or ever will. They are already fixed. Done deal. That is how I understand it.
That’s my take as well.
To me, the last part of the sentence below makes it clear – “until they are redeemed”.
From their 10-Q, filed Jan 10th:”We will pay dividends on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 after March 31, 2024, and on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 after September 30, 2024, at the Fixed Rates until they are redeemed.”
I was looking at the composition of pfd ETFs for kicks in light of the Enstar plunge, one PFXF has a big chunk in these CHS pfd names. The biggest holding is the Albemarle pfd which was an eyeopener. These things as we know are driven by arbitrary indexes which just hold all sorts of ‘goodies’. Not in any at this time but maybe will look again.
unrelated; added to SR-A on the little selloff, added to LBRDP and MGRE in the Roth. So much ‘cash’ have to deploy a little. Noticed on the short end 3mSOFR has drifted down from a somewhat anchored 5.43% to 5.24%.. Powell says ‘September’ yields plunge! lol. Gold soars!! crazy world. Hard out there for us folks. Bea .. try to remember… https://www.youtube.com/watch?v=6-uJ5FLuL7k&t=3s
Bea, also added to SR-A this afternoon. In addition added to EP-C. Slim pickins out there!!!!
Bea-
A great song & performance –never heard of the singer. My oldest son had a part in THE FANTASTICKS about 45 yrs ago – small part for a child. Still have photos I took at the local production when we lived in NM. I do remember September.
Heavy volume on all the CHS preferreds. Someone getting out. I can’t find any news. About half of my preferred list dropped today, don’t make sense. I thought with the Fed almost promising to lower rates that these would be up today.
Can’t find anything anywhere.
from Quantum:Notes: Statement from the 10Q filed January 10, 2024 — January 2, 2024 per the terms of our Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 and Series 3, and the Adjustable Interest Rate (LIBOR) Act, the stated rates of 7.10% and 6.75%, respectively, were fixed at 7.10% and 6.75% (the “Fixed Rates”), respectively. We will pay dividends on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 2 after March 31, 2024, and on Class B Reset Rate Cumulative Redeemable Preferred Stock, Series 3 after September 30, 2024, at the Fixed Rates until they are redeemed.
A lot of my preferreds dropped today also. Also, my munis were down .25% almost across the board.
As someone else reminded us, there were end of month last day of trading things going on today. I suspect, especially based on the large volume and end of day trades that that has more to do with the drops than anything else… I doubt there’s any more meaning to it than that.
Volume was very heavy for the CHSCM and CHSCN preferreds.
I suspect an end-of-month rebalancing, since today was the final trading day of July.
Added a small amount to my position in CHSCM, but didn’t catch the bottom 🙁
thanx MFZ grabbed a little CHS -M at 24.75, fine holding in the Roth at 6.75% for a while if needed; when I get a decent issue at a decent price in the RothIRA I am comfortable given the tax free to me element as well. I agree w Mark musta been a rebal of some ETF or fund, probably? same thing happened w SR-A whose volume was higher than normal so along w PigPile here, as noted earlier, I took a little more there too.
Barron’s indicates that citygroup issues new preferred at 7%
Any details on this new issue??? It seems kinda high for them.
It is $1000 par non-listed. Series DD cusip 172967PM7
https://www.citigroup.com/global/investors/fixed-income-investor-relations/capital-securities
The Citigroup issue, series DD, is traded over the counter like a corporate bond and isn’t traded on the NYSE. It is due to settle on Tuesday like the Morgan Stanley deal.
$1000 Par issue ….. trading over par so far .
Citigroup series DD $1000 perpetual, non-cum preferred issued 7/30/24
172967PM7, BB+/Ba1
7% fixed-reset, first reset 8/15/34 to 10-year yield + 2.757%
pays quarterly, 10 year resets
redeemable on any payment date on or after the first reset date
Looks to be trading above 102, making CY < 6.86%. Does anyone have better info?
Here is the prospectus
https://www.citigroup.com/rcs/citigpa/storage/public/Series-DD-Final-Prospectus-Supplement.pdf
Here is a complete list of all Citibank preferred issues including their CUSIPs. I own a 50% position in Series CC which resets after 5 years.
https://www.citigroup.com/global/investors/fixed-income-investor-relations/capital-securities
Regarding the proposed buyout of ENSTAR GROUP<
Edgar Database/ SEC sites describe the complete process to
date, in a recent proxy statement. That is the best place to read about the proposed transaction. **The only point I do not understand is if dividends will continue to be paid after all steps are completed. But I am not as knowledgeable as most folks on this
site. Thanks.
Morgan Stanley, 6.375% Dep Shares Non-Cumul Preferred Stock Series I
(Will not be rate resetting; staying fixed with original coupon)
Ticker Symbol: MS-I
Baa3 BBB-
Currently selling just under par with effective yield = 6.40%
where did you see that?
https://www.morganstanley.com/press-releases/replacement-rate-for-u-s–law-governed-u-s–dollar-libor-linked-
The following chart identifies the U.S. law-governed U.S. dollar LIBOR-linked preferred stock (and related depositary shares) and debt securities issued by Morgan Stanley that will not transition to the Replacement Rate by operation of law or otherwise. After the Cessation Date, dividends or interest on these instruments will continue to accrue at the specified fixed rate.
Morgan Stanley-Issued Preferred Stock (and Related Depositary Shares)
CUSIP
Description
61762V200
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series E (and related depositary shares) (7.125%)
61763E207
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series F (and related depositary shares) (6.875%)
61761J406
Fixed-to-Floating Rate Non-Cumulative Preferred Stock, Series I (and related depositary shares) (6.375%)
thanks
will have to decide how long these will go before being called. As you pointed out, the I is below par so no issue if it gets called and will probably
be last on the call list
theta-
Why did you post this now? Because MS-I is trading under par?
Exactly. The genesis of my trade alerts are when an investment quality grade 6%+ payer is trading down to par or less. I don’t have time to worry about amortizations come tax time or follow if an issue is getting called etc. so I keep it pretty simple in this regard. The most I pay is par. I know others have a different mantra, which is fine and nontaxable accounts also can be an area where it’s moot as well.
NFE declared preferred dividends for GMLPF. I don’t own.
ESGRP is in free fall, down 18%. Sixth Street will buy Enstar Group for a premium at $5.1B; deal is expected to close in 2025.
So, what is reason for preferred issues ESGRO and ESGRP to drop as a result of the sale of ESGR?
NVM – I see concern with issues delisting and going dark.
So, PREJF is already delisted to OTC and yields a paltry 7% ….I just bought 100 shares of ESGRO for $21.74 after hours for a much better yield of 8.05%, and I can’t see it getting worse than the PRE over reaction. At $21.74 easily had, this is ridiculous territory for ESGRO!
That isn’t de-listed.
De-listed means you can’t buy it on ANY market.
In the true form. you are correct Justin. Most respectfully and in good spirit, of all the preferreds that have been threatened to be fully delisted in the last 2 years, how many have actually gone that far, like Amtrust and PSB? It seems more end up like Athene and Triton, and still trade, or are called, from all appearances. Can someone give a ratio/track record of preferreds actually going fully dark vs still trading regarding all the takeovers involving preferreds in the last 2 years or so? Much appreciated!
Eating my words, lol! The announcement does say the shares willl be converteed to new shares, and the old D and E shares will be delisted from the Nasdaq. It does not definitively say whether the NEW shares will be listed or delisted or gracedully demoted to OTC…….sigh
Here is the paragraph on the SEC site which is linked to on this site. Bottom line, the preferred shares will not be able to be traded when all transactions are completed. I did not see any
information on dividends at that point.
If the Merger is consummated, the Ordinary Shares, the Series D Preferred Shares and the Series E Preferred Shares will be delisted from The NASDAQ Stock Market LLC (“NASDAQ”) and deregistered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as promptly as practicable after the Third Effective Time.
Exactly Fan59. I like your logic. And by that reasoning and logic, you would really like AFSIM. There is a lot of metrics when evaluating companies. But in the end, go with highest yield or your gut instinct. This is Rida’s mantra as well.
ESGR is a $300+ stock, and their preferreds are rated BB+ by S&P, and are a far cry from the smoke and mirrors of ASFI. AFSI was controlled closely by Barry Zyskind and his inlaws, the Karfunkles. The difference is that a broad consortium of Sixth Street, Liberty Strategic Capital, J.C. Flowers & Co. LLC, and other institutional investors will acquire Enstar, which should favor a more equitable disposition of the preferreds than when the Karfunkles were able to inordinately determine the results due to their majority stake. Sure, I could be wrong, maybe the Enstar preferreds will indeed be fully delisted. I’m sure a lot of us will be watching to see just how the consortium says it intends to handle the prefererds. Goof luck to all!!
Fan59
Kindly see my comment above offering info from the SEC site.
The preferred issues will NOT be able to be traded, but I did
not see any info on dividends. May have missed it.
ESGRO and ESGRP have lost another 40 million in value today. Yesterday 73 million lost in value for a two day total loss in value of $113 million to preferred shareholders. Hopefully, all the security attorneys will take interest in this huge loss with CEO Dominic Silvester stating “We believe this is the best next step for our shareholders”. Losing 22 percent of your money in two days amounting to 113 million in losses is NOT “the best next step.” Where is the SEC?
CUBI-E and -F dividends announced.
WEST READING, Pa.–(BUSINESS WIRE)– Customers Bancorp, Inc. ( CUBI ) announced that the Board of Directors has declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series E of $0.67876078 per share. The dividend is payable on September 16, 2024, to shareholders of record on August 31, 2024.
The Board of Directors has also declared a quarterly cash dividend on its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series F of $0.65487329 per share. The dividend is payable on September 16, 2024, to shareholders of record on August 31, 2024.
VALLEY NATIONAL BANCORP
Shares of % Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C
https://www.sec.gov/Archives/edgar/data/714310/000119312524186782/d864211d424b5.htm
Hearing 8.25% coupon area QDI
Got it J – thanks.
DLNG A/B under pressure with upcoming ex-div dates, if this fits your risk profile.
Thanks Steve.
Enstar to be acquired by Sixth Street for $338,00/share in cash (BBG)
https://finance.yahoo.com/news/enstar-acquired-sixth-street-5-110700526.html
from the press release:
“Upon completion of the transaction, Enstar’s common stock will no longer be publicly listed, and Enstar will become a privately-held company. The Company will continue to operate under the Enstar name.”
I did a keyword search for “Change of Control” in ESGRO and ESGRPs prospectuses. Only found that phrase 3 times, and none of them mentioned the fate of the preferreds. So I have no idea what will happen to them, but it seems they could go dark (delisted and deregistered, etc.)
MBG you made me look. Mixed emotions, I don’t hold either preferred thankfully so I don’t have to deal with the possibility of another delisting. If one wants to risk it Enstar is showing a drop pre-market of 10.00 below the buyout price.
Such a simple straight forward transaction: “As soon as practicable following the Second Effective Time, Parent Merger Sub shall merge with and into the Second Surviving Company (the “Third Merger”), with the Second Surviving Company surviving as the Third Surviving Company. Upon the effective time of the Third Merger (the “Third Effective Time”), each Second Surviving Company Ordinary Share issued and outstanding immediately prior to the Third Effective Time (other than (v) the Second Surviving Company Ordinary Shares owned by Parent, Parent Merger Sub or the Second Surviving Company or their respective wholly-owned Subsidiaries, (x) any Second Surviving Company Ordinary Shares subject to the Company’s equity awards, (y) any Second Surviving Company Ordinary Shares that are Dissenting Shares and (z) to the extent the Third Effective Time occurs prior to the JSOP Vesting Date, any Second Surviving Company Ordinary Shares held subject to the JSOP at such time) shall be converted into the right to receive an amount in cash equal to (A)(I)(i) $338 multiplied by the aggregate number of Second Surviving Company Ordinary Shares that are not the Second Surviving Company Ordinary Shares held by holders of the Reinvesting Shares, on a fully diluted basis, as of immediately prior to the Third Effective Time, minus (ii) Aggregate First Merger Amount divided by (B) the aggregate number of Second Surviving Company Ordinary Shares that are not the Second Surviving Company Ordinary Shares held by holders of Reinvesting Shares, on a fully diluted basis, plus (y) the aggregate cash consideration actually paid in respect of the First Merger, divided by (B) the aggregate number of Second Surviving Company Ordinary Shares that are not the Second Surviving Company Reinvesting Shares, on a fully diluted basis plus (z) if applicable, any amount set forth in the True-Up Notice (on a per share basis based on the amount of Second Surviving Company Ordinary Shares entitled thereto), in each case, without interest and less any amounts required to be deducted or withheld (the “Third Merger Cash Consideration” and together with the First Merger Cash Consideration, the “Total Cash Consideration”). Upon the Third Effective Time, each Second Surviving Company Ordinary Share held by holders of the Reinvesting Shares shall, at the election of Parent, either receive the Total Cash Consideration or be canceled and cease to exist….”
BOTTOM LINE: “If the Merger is consummated, the Ordinary Shares, the Series D Preferred Shares and the Series E Preferred Shares will be delisted from The NASDAQ Stock Market LLC (“NASDAQ”) and deregistered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as promptly as practicable after the Third Effective Time.”
https://www.sec.gov/Archives/edgar/data/1363829/000110465924083290/tm2420342-2_defa14a.htm
Who’s on first?
well I am ‘out at the plate’ here MBG.. these were favs of PST and Rida bunch of course.. and Bea has a small holding of the O bot at 24.11 in taxable..dumped em at 24.68 just now.. so thanx for heads up to all, want no ‘delisted’ nonsense in my portfolio I don’t care if they are ‘paying’ or not. Bea
Bea,
Nice. Sacrifice bunt, for the sake of the team (Bea’s portfolio). Not even a sacrifice, since you got out with a gain, plus dividends.
It’s already down to 24.00
yes MBG, the Enstar pfds are now in the 22’s! thanx again folks. These might not only be delisted but the way I read the prospectus they can just not pay and of course are non cumulative as an insurer. Bea at bat, what will she buy?? oh God, Monday-Monday.. always somethin. Well FED week so patience I think. Guess all the PST/Ridas are dumpin.
2wr – Thank you for that timely translation.
You saved me a couple hundred bucks.
Steve
I never knew time to be so effective… what , no first time? There must be.
Glad I don’t own ’em
I was able to buy two lots (one odd, one 100 shares) of GMLPF at $10.45 (put in limit for $10.60). Just FYI….goes ex-in next couple of weeks (last ex- was May 7th).
looks interesting ; nothing on SA ;
and I get a quote on Schwab but can’t buy it on my Edge?
ted-
Schwab:
No opening transactions are allowed on securities affected by amendments to SEC Rule 15c2-11.
Gray mkt after its buyout- delisted by New Fortress Energy
Hmmm… might be possible on Fidelity- but has this oddball stuff:
(NFE is NY based).
(020398) All foreign ordinary securities orders placed online are routed to a U.S. market maker for execution in the over-the-counter market. If the quote shown is not current, please call 800-544-2976 for updated prices.
I’m a numbers guy not a deep analyst who knows what the Hell is going on with these half priced issues. Hard pass. I’d rather go to Vegas.
I agree .My degree is accounting, but that means very little . One needs to understand the business and the management.
Unfortunately for me…or perhaps fortunately(?) I already live in Nevada.
1:17 AM EDT, 07/25/2024 (MT Newswires) — Atlanticus Holdings (ATLC.NaE) said Thursday that it priced its underwritten public add-on offering of $55 million aggregate principal amount of its 9.25% senior notes due 2029 at $24.70 per additional note.
12%+yield for 1 month, virtually no risk/
GRIN. The stub left over from the tender is being purchased at 14.25.
Delisting on Aug 17 or 19 (can’t recall), company says payment on Aug 21. Board approved.
I’ve been following a long time and own quite a bit as a yield play.
I’m both bid and offered
12% for you? Or 12¢ ?
It’s $14.13
He’s considering the annualized return, so figure 27 days. Depending on price it’s around 11-12%. If somoene had free cash laying round this is 2x better than what would be earned in money market fund and certainly easier and beats what a 30 day CD would pay. But obvioulsy some risks too, even with Board approval.
At the price GRIN was at when I made that comment, 14.10, it was a 12 yield to the payment date. Yes , it was 15 cents at the time. Yes, its now less than 30 days till payment.
The buyer owns over 90% of the company and this is the cleanup of the remaining shares. Buyer paid , if memory serves $21 for the initial purchase.
I’ve seen weird things happen with the stub of a tender offer when there weren’t many shares in existence….One stock has a short squeeze from 25 to 95 in an hour, and I’ve seen a few go to multi-dollar discounts in a rapidly falling market.
However, this is unlikely to do anything other than slowly trade up. I’m a buyer at one price and a seller at another.
I put odds of something going wrong as close to zero, but certainly not zero. A big rock could hit the Earth. China could invade Singapore.
Almost anything could happen . In the past, things like this have traded close to the short term MM rate.
FWP for the new Morgan Stanley issue. Lower than I expected. 6.625% fixed rate
https://www.sec.gov/Archives/edgar/data/895421/000114036124033873/ef20032899_fwp.htm
It is trading as MSPQV at $25.80 (5,000 shares traded). I will pass. So, I did not try to hunt down the prospectus.
Which broker, SteveA?
Do not know which brokers. I can do a stock quote on Schwab. I do not know if they will accept orders yet. 390,000 shares currently at 25.75
I am surprised it started at such a high price right out of the gate. Now I have lost a bit of interest and feel no rush to buy. At that price I have to check what else everything comparable is selling for.
It looks like MSPQL is the ticker on Fidelity but not 100% on that…
Just noticed, the prospectus was linked to in the FWP. Did not have to search for it. The use of proceeds is for general purposes. They have some higher fixed rate issues. perhaps they will be called.
https://www.sec.gov/Archives/edgar/data/895421/000095010324010465/dp215004_424b2-prodepsq.htm
Wow, the new 1,000 issues more attractive.
What issue are you talking about at $1,000???
I looks like the ATLCZ secondary is hitting the market this morning. 24.3 x 24.4 premarket
good comment.. the atlcz/sjnk pair traded below its prior low which was set in april and and now is slightly above.. I paid 24.6
Sold MITT-B today with almost one-year of dividends in cap gains. Not happy letting go of the yield. Feeling edgy about REITs.
Sandbox material?
good comment.. mitt.prb/pff pair has outperformed since october 2022 nearing all time set in february 2022..on a 1yr horizon trading near 2 sigma rich ..nice trade
Mitt-B has nice gains can’t fault you for taking profits but I’m holding on Switched into MITN below stripped par for 9.5% baby bond with first ex-div in a week.
PMT / Pennymac common down 7.2% on earnings shortfall: earned .17c vs .35c expected. The key sentence in the press release explaining the shortfall was, ” Net losses on investments for the segment were $37.2 million, which primarily consisted of losses on MBS due to higher interest rates.”
I had been looking at PMT preferreds. Did you dump on stick with them?
Yield Hunter, They had a mixed earning report. I expect they will be on a roller coaster ride for a while. The market for residential mortgages is thin right now with what people perceive as high rates because the cost of buying a property is so high that they have to take a larger loan with bigger payments than 3 or 4 yrs ago. If the market gets spooked or the economy goes into a recession the amount of mortgages sold is going to slow down even more. How much that affects PMT I don’t know.
That’s where so many of the mREIT are. It’s tough and takes a lot of dissection but there is tremendous value with the right ones…
Yield Hunter – I have every series of PMT Preferred and also BB, PMTU. Noy worried too much about the preferreds, have not sold one share. Fan
One consideration is how they’ve treated their Preferred stock owners. A and B were supposed to float w LIBOR this year, but, unlike almost every other LIBOR floater, which transitioned to SOFR+, they decided that since LIBOR no longer exists, they’re not required to change to float and have maintained payments at prior fixed rate. Can’t believe that SEC, etc. have let them get away with what seems to me to be a dishonest approach to this. Also surprised there weren’t any lawsuits (that I know of) from the usual securities lawyers.
If I’m wrong about this, appreciate any corrections. TIA
What????
From the prospectus…
” if there was no such dividend period, the dividend shall be calculated at the dividend rate in effect for the immediately preceding dividend period”
They are doing what the offering documents says they have to do.
https://www.sec.gov/Archives/edgar/data/1464423/000104746917001172/a2225936z424b5.htm
mficl/sjnk pair trading near inception low (underperform)..the mfic/bizd pair has seen mfic outperform since inception in august 2022.. mfic dropped over 8% today seeing the pair go from 2 sigma rich in june to over 3 sigma cheap today…I bot some
Is the drop due to the merger of the three funds?
Probably has a lot to do with the merger, Gary, compounded by a heavy selling pressure day.
Aha- selling….
no it came down because of an overabundance of sigmas
man.. i need to get me some sigmas σσσσσσσσσ
sometimes it is hard to tell if 2wr is joking or not. He is like a Joey Bishop or something.
2whitesigmas…well one these days sadly. better than twowhitepennystocks I guess.. Bea, the old childless cat lady..
I do have a coupla those pennystocks, Bea – penny stocks that didn’t start out as pennystocks…. I’ve very disciplined and successful at setting aside some throwaway money for spec and throwing it away… Witness EOSE which is no longer a pennystock buf from my cost point of view might as well be… One of the Koch brothers and I were way too early in getting into this one, he to the tune of $100 mil… Me? way way WAY fewer digits involved…
Atlanticus Holdings is adding shares of ATLCZ:
http://archive.fastedgar.com/20240723/AHZZS22CZM2242Z3222F2MZZN6KRZ6X8ZU62/
I think this is the best of the “Baby Bonds.” ATLC is a thriving company unlikely to default and the issue yields 9.25% at par.
good comment.. over its short life the atlc/sjnk pair is trading near 1 sigma cheap…it was near 3 sigma cheap in april
FWIW, I like ATLCZ but really like ATLCL as short money hold. ATLCL has a coupon rate of 6.125%, based on current Ask @22.75 this has a current yield of 6.6%. However it matures 11/30/26 which gives it a YTM of 10.9%. ATLCZ matures 1/2029.
ATLCL now trading at $22.67 YTM of 10.66% matures 11/30/26
I would have to double check my memory on this but they use the money from Z to pay off even more expensive class B preferred. They actually save money by doing this.
I own all 3 of ATLCs offerings. The preferred and both BBs. I add to Z whenever I have some loose change floating around the account when I do not know what to buy.
Oh.. it was 2wr here on this forum who shared this in the past.
“”We intend to use the net proceeds from this offering to redeem a portion of the $100.5 million principal amount of Class B preferred units issued by one of our subsidiaries and/or for general corporate purposes. The Class B preferred units carry a 16% preferred return payable quarterly, with up to 6 percentage points of the preferred return to be paid through the issuance of additional units or cash, at our election. The units have both call and put rights and also are subject to various covenants including a minimum book value, which if not satisfied, could allow for the securities to be put back to the subsidiary. A holder of the Class B Preferred Units may, at its election, require the subsidiary to redeem part or all of such holder’s Class B preferred units for cash on October 14, 2024. We have the right to redeem the Class B preferred units at any time with notice.”
“
What the heck is that 16% about ? – it’s a much lower, 7.625% coupon.
It was a private placement. It is not the 7.625% one you are thinking of.
Yup…. I also pointed that out after further research…. I was lucky to get out of P even after making that mistake and really never looked deeply into Atlanticus..
Meanwhile, as of today, a short seller has “borrowed” my small # of Z shares and I’m getting a daily rate of ~$0.08/day/share or 16.375% per Fidelity. May try to buy more tomorrow.
they had my Woodside (WDS) the acquirer shares borrowed up till the merger announcement and then took the short off I guess. Too soon, Woodside was flat on the news but down on the 2nd q report given the cost overruns on the Scarborough AUS lng project. Added to WDS today. No position in TELL or Z’s. good luck. Most analysts positive on it and that they will bring in strong partners.
So far- not specifying the number of shares.
Morgan Stanley Pfd. incoming
Each of the depositary shares offered hereby represents a 1/1,000th ownership interest in a share of perpetual % Non-Cumulative
Preferred Stock, Series Q (“Series Q Preferred Stock”), liquidation preference $25,000 per share, of Morgan Stanley, deposited with The
Bank of New York Mellon, as depositary. The depositary shares are evidenced by depositary receipts. As a holder of depositary shares,
you are entitled to all proportional rights and preferences of the Series Q Preferred Stock (including dividend, voting, redemption and
liquidation rights). You must exercise such rights through the depositary.
Holders of Series Q Preferred Stock will be entitled to receive dividend payments only when, as and if declared by our Board of Directors
or a duly authorized committee of the Board. Any such dividends will be payable from the date of original issue on a non-cumulative
basis, at a fixed rate per annum equal to %, quarterly in arrears on the 15th day of January, April, July and October of each year,
commencing on October 15, 2024. Payment of dividends on the Series Q Preferred Stock is subject to certain legal, regulatory and other
restrictions as described elsewhere in this prospectus supplement.
In the event dividends are not declared on Series Q Preferred Stock for payment on any dividend payment date, then those dividends will
not be cumulative and will cease to accrue or be payable. If we have not declared a dividend before the dividend payment date for any
dividend period, we will have no obligation to pay dividends accrued for that dividend period, whether or not dividends on the Series Q
Preferred Stock are declared for any future dividend period.
We may, at our option, redeem the shares of Series Q Preferred Stock (i) in whole or in part, from time to time, on any dividend payment
date on or after October 15, 2029 or (ii) in whole but not in part at any time within 90 days of certain changes to regulatory capital
requirements as described under “Description of Series Q Preferred Stock—Redemption,” in each case, at a redemption price of $25,000
per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared
dividends. The Series Q Preferred Stock will not have voting rights, except as set forth herein under “Description of Series Q Preferred
Stock—Voting Rights.”
Has anyone heard an indication for this?
6.625 …
Do you know if it’s fixed or reset?
Fixed
1 billion dollars
Does anyone have a date for trading or ticker for this?
TRINI up on Fido pre-market, Bid/Ask now 24.9/24.93
Surprising it hasn’t climbed more since yesterday.
RF-F term sheet:
Priced at 6.95% initial coupon.
Resets at 5-yr Treasury + 2.771%
https://www.sec.gov/Archives/edgar/data/1281761/000128176124000045/regionsfinancialcorporatio.htm
According to Fidelity, Indaba Capital, a ‘hedge fund’ of about 1bil AUM, which personally I had never heard of, has taken an activist? stake in EQC Equity Commonwealth. Well, 6.5% on the pfd even backed by $2bil in cash and a few B type ofc buildings is not enough to keep me in the pfd EQC-D anymore. I sold at 25.11 was a small ‘juice’ cash holding for me anyway and I don’t want any illiquid securities or otc stranded type issues. fyi. Bea https://indabacapital.com/team/
Well according to Bloomie this is only a 3% holding in EQC by this group, should have known these pop up all the time and do nothing..that said I guess I am glad having collected 6.5% for a while on this that I got out at 25.11. Something will probably happen even management said they will move or get off the pot (to put it ‘nicely!’ ) lol.
Might be worth holding the common Bea.
TRINI is active @ FIDO
$24.92
I only seen propsectus without rate – What’s the coupon rate for TRINI?
@FK_Guy
TRINI is paying 7.875%
for some reason my previous posts died…crowdstrike?
oops typo s/b FL not the other one
my bad
Hi FL_Guy.
Coupon = 7.875%. Same coupon as TRINZ.
https://www.sec.gov/Archives/edgar/data/1786108/000121390024061872/ea0209506-01_fwp.htm
RFPrF incoming
…we intend to use the net proceeds to redeem all
outstanding shares of the Series B Preferred Stock RF-B…
https://www.sec.gov/Archives/edgar/data/1281761/000128176124000042/regionsfinancialcorporatio.htm
Expected Security Ratings:*
Baa3 / BB+ / BB+ (Moody’s / S&P / Fitch)
Issuer Ratings:*
Baa1 / BBB+ / A- (Negative / Stable / Stable)
Size:
$250mm (10mm $25 par securities)
IPT:
7.125% Fixed-Reset
CUSIP:
7591EP860
Thanks EB
Thanks J
PRE-J symbol has been changed to PREJF
Woodside (WDS adr or WDS.Australia) is buying Tellurian TELZ is a listed BB. Long WDS. Part of my energy portfolio… Meg makin moves like a strong woman boss! She is developing offshore MX w Pemex, just brought on a big off Senegal oil field, secured LNG to Taiwan, has obtained big investments from strong Japanese co’s derisking LNG developments, has a JV 50/50 w a big NG field in Canada w Paramount Resources (long that well run co as well. PRMRF otc or POU on TSX.) Woodside took over BHPs o/ng biz including now producing under Woodside’s finishing of development Gulf of MX oil. They have a JV w Total Energies for oil as minority partner off Trinidad. DYODD, interesting!! Bea https://ir.tellurianinc.com/press-releases/detail/291/tellurian-to-be-acquired-by-woodside-for-approximately-900
i wonder what this means for the tell note due in 2028
Telz
TELZ
Merger, Consolidation or Sale of Assets
The indenture will provide that we will not merge or consolidate with or into any other person (other than a merger of a wholly owned subsidiary into us), or sell, transfer, lease, convey or otherwise dispose of all or substantially all our property in any one transaction or series of related transactions unless:
•
we are the surviving entity or the entity (if other than us) formed by such merger or consolidation or to which such sale, transfer, lease, conveyance or disposition is made will be a corporation or limited liability company organized and existing under the laws of the United States of America, any state thereof or the District of Columbia;
•
the surviving entity (if other than us) expressly assumes, by supplemental indenture in form reasonably satisfactory to the trustee, executed and delivered to the trustee by such surviving entity, the due and punctual payment of the principal of, and premium, if any, and interest on, all the Notes outstanding, and the due and punctual performance and observance of all the covenants and conditions of the indenture to be performed by us;
•
immediately before and immediately after giving effect to such transaction or series of related transactions, no default or Event of Default has occurred and is continuing; and
•
in the case of a merger where the surviving entity is other than us, we or such surviving entity will deliver, or cause to be delivered, to the trustee, an officers’ certificate and an opinion of counsel, each stating that such transaction and the supplemental indenture, if any, in respect thereto, comply with this covenant and that all conditions precedent in the indenture relating to such transaction have been complied with.
thanx 2WR, guessing WDS will ‘assume’ for now the bb’s not sure, high int rate, probably wont announce till they know it is approved . An easy payoff if they redeem they are a large co of course.. some of us remember Cheniere LNG in the doldrums –lots of hurdles.. now a ‘blue chip’.. oh well lots to come, no production till 2028 ..was talk of WDS brining in Aramco to jv, Woodside does a lot of jv’s to derisk, or US partner to make it ‘more palatable’ oh well, WDS selling off a little Aussie buzz mostly good but o/ng down mostly anyway. Hope the longs on TELZ make out well. Not for me but will keep the long position in WDS. Bea
Ugh, Bea.. You had to mention LNG and ruin my morning.. lol…It was one of my worst chicken out moves I can remember. I bot LNG in Dec, 2010 at under 5 and got out 3 months later at 7.50… Jumped back in Nov ’11 @ 19.75 and unloaded in Feb ’12 at 22.28 never to return…. boo hiss……… yeah I know, you never go broke taking a profit blah blah blah. ha.
Congrats to those who held on to TELZ. I used to own it but could not handle the disastrous mgmt and got out taking a small hit. I tried to follow along out of interest but figured they only had months to survive now days and someone would pick up the pieces in bankruptcy. The common shareholders got truly destroyed if they held for any length of time. What a wild roller coaster for the BB holders.
For redemption in these time frames:
” after 11/30/2024 but prior to 11/30/2025 at $25.50 (102%) plus accrued and unpaid interest, after 11/30/2025 but prior to 11/30/2026 at $25.25 (101%) plus accrued and unpaid interest, after 11/30/2026 at $25.00 (100%) plus accrued and unpaid interest, and maturing 11/30/2028.”
Callable since last Nov. Parent Co is TELL, not TELZ
TELZ is doing well– same for TELL- only better.
Bea- what is the tax treatment for dividend on WDS in tax deferred accounts, do they deduct tax?
Jay, if held in a IRA or 401k there would be no withholding. But to confirm look at comments on SA
PRE-J going dark. Not expected to stop paying. Price dropped somewhat but still only paying 7.25%. too low for the dark market so more drop may be forthcoming.
Martin, Agree. Grid said if it dropped to $12.00 he might take a nibble but 7.25% isn’t enough for the risk with it possibly not trading. Fidelity allows trading in the LTSA BB’s and the preferred. But since this isn’t a term preferred as far as I know.
Oops, duplicate post.
I blame Crowdstrike.