READER INITIATED ALERTS

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441 thoughts on “READER INITIATED ALERTS”

  1. NEW ISSUE
    Issuer: Pinnacle Financial Partners Inc. (NASDAQ: PNFP)
    Security: Series B Fixed Rate Non-Cumulative Redeemable Perpetual Preferred Depositary Shares
    Expected Ratings: BBB- (POS) (Kroll) / BBB+ (Egan Jones)
    Maturity: Perpetual
    Size: $100.0mm (4.0mm shares – $25 Par) (subj to increase plus greenshoe)
    Offer Price: $25.00 (Par)
    Price Talk: 6.75% area
    Optional Redemption: Redeemable (i) in whole or in part, from time to time, on or after September 1, 2025 (NC-5), or
    (ii) in whole but not in part, at any time within 90 days following a Regulatory Capital Event (as defined in prospectus), in each case at a redemption price to $1,000 per share (equivalent to $25 per depositary share), plus any declared and unpaid dividends, without accumulation of
    any undeclared dividends to, but excluding, the redemption date
    QDI/DRD Eligible: Yes
    Expected Listing: NASDAQ
    Ticker: PNFPP

    1. What the??????????? 5 days ago Truist issued Ser O 5 1/4% non-cum perpetual listed and today they’re doing Ser P non-cum perpetual unlisted??? Whatt’s the point?

    1. Scorpio Tankers just redeemed a three year senior note (SBNA) that paid a 6.75% coupon. Considering how good tanker rates for petroleum products have been this year, I’d be (pleasantly) surprised if the coupon on their new note is higher than the old one. I’ll be a buyer either way.

  2. Sunstone Hotel has two preferreds (-E,-F) that are relative standout performers year to date. They are down -10.4% and -8.3% respectively compared to the median return for all lodging REIT preferreds of -62.7%. Sunstone reported REVPar of $2.40 for April 2020 compared to $208.9 for April 2019, so the business is mired in the mud just like all of the other lodging REITS. I do NOT understand why these two preferreds have performed so well. They have announced June dividends on both issues will be paid, compared to some of the others that have suspended their dividends. They did suspend the common dividend.

    Their balance sheet is very strong with ~ $900 million in cash, so they claim to have a “long runway.” Their Q1 operating expense was ~$330 million, so worst case the cash runs out in about 3 quarters, even if they stop paying interest on loans/notes. And yes, their balance sheet is probably much stronger than the other lodging REITS. Several of them seem priced for bankruptcy with low recoveries on their preferreds. We have no position in these preferreds, but you might want to consider the bullish case if you own either of them.

    2020 Year to date return for lodging REIT preferreds

    SHO-PF -8.25%
    SHO-PE -10.42%
    PEB-PC -26.38%
    PEB-PF -26.42%
    PEB-PE -26.57%
    RLJ-PA -26.85%
    PEB-PD -28.75%
    INN-PD -32.17%
    INN-PE -32.49%
    BHR-PB -57.89%
    BHR-PD -62.57%
    HT-PC -62.75%
    HT-PD -63.09%
    HT-PE -63.60%
    AHT-PD -71.80%
    AHT-PF -76.55%
    AHT-PG -77.05%
    AHT-PH -78.55%
    AHT-PI -78.84%
    SOHON -79.26%
    SOHOO -80.04%
    SOHOB -80.26%

    Median -62.66%

    Sunstone Q1 Earnings Report
    https://sunstonehotelinvestorsinc.gcs-web.com/static-files/fb74c1a7-c38d-461f-ab54-aba453e46e8b

    1. Tex, thanks for bringing up something for future conversations, Hard to search prior comments on lodging reits, but I think Chuck P was holding some PEB.
      Wait to see how this holiday pays out. I know a lot of people have cabin fever, but most I asked said they were staying close to home. Here in wine country Disneyland I have been seeing more bicycle riders in the middle of the week so some tourists are coming back, but things are still shut down. They were supposed to allow limited opening of restaurants starting yesterday. Wonder if Air BNB will start to recover.
      Interested to hear what rest of country is experiencing

      1. Washington state is still locked down pretty tight. Covid trend lines are declining steeply but our gov is very slow to loosen things up. Businesses are really hurting. Many are closing up for good. Skagit county, north of Seattle has seen 1, yes 1 new case of coronavirus during the past seven days. We can’t go to a restaurant, a movie theater, a shopping mall or get an ice cream cone. However, you can get on a plane and sit shoulder to shoulder for several hours with 250 people you don’t know. Arbitrary and senseless.

  3. BSX New Issue
    5.50% Mandatory Convertible Preferred Stock $100 par
    Cusip 101137 206
    I believe it will initially be trading with symbol BSCFP and later be BSXpfdA

    1. Can I make a suggestion to you and mcg? When you guys discover these new issues, would it be possible for you to put the name of the company in your posts along with the stock symbols? I know I have to look them up with each announcement where as if the company’s name was posted as well, half the time I’d know right away I wouldn’t have any interest…. thanks

    2. RE: BSX

      I did something I rarely do, that being enter a buy order on a mandatory convertible. In kids’ accounts.

      I knew it would be the customary 45-60-minute call to Vanguard to get orders entered, and they did not disappoint. No, this isn’t a penny stock, it isn’t illiquid (trading 3+ million shares by that time), blah, blah, blah.

      For about the hundredth time (literally) I had to listen to an associate defend the fact that Vanguard’s systems cannot distinguish between shares in a Peruvian llama farm from those of a Fortune 500 company that just happened to be a new issue.

      Vanguard: you waste a lot of my time and you cost me money. I should have been able to get shares for just over $100 and instead it will be closer to 103-104.

      If you don’t want to do a good job of brokerage then get out of brokerage. I have had accounts with Vanguard for 45 years, from the days when John Bogle would call ME. For the first time I am moving money out of Vanguard.

      1. Different brokers have different strengths and weaknesses. Run several accounts so you can choose accordingly. The only downside is switching between them. On a busy day I use more than one computer.

        Free commission has repercussions. Some of the brokerage problems we’re seeing today are due to compensating for the lost revenue.

    1. 6% coupon, mandatory conversion 6/1/23. BDX currently at $240 convert at $50. Conversion range is 3.4722-4.166 or 0.1736-0.2083 depending on how you like to calculate.

  4. Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCO) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (“Oxford Lane” or the “Company”) today announced that the Company’s board of directors has authorized a program for the purpose of repurchasing up to $40 million worth of the outstanding shares of the Company’s 7.50% Series 2023 Term Preferred Stock, 6.75% Series 2024 Term Preferred Stock and 6.25% Series 2027 Term Preferred Stock (collectively, the “Preferred Stock”). Under this repurchase program, the Company may, but is not obligated to, repurchase its outstanding Preferred Stock in the open market from time to time through September 30, 2020. The timing and number of preferred shares to be repurchased will depend on a number of factors, including market conditions and alternative investment opportunities. In addition, any repurchases will also be conducted in accordance with the Investment Company Act of 1940, as amended. There are no assurances that the Company will engage in any repurchases.

      1. mcg
        Please disregard my question to you. I did find the non-trading statement.
        Thanks,
        Howard

    1. mcg
      Would you kindly advise where you found the non-traded statement
      in their literature. I looked at the prospectus documents and must have missed that point. I appreciate it.
      Howard

      1. P S-13 under Risk Factors – The Series A Preferred Shares are a new issue of securities with no established trading market, and we do not intend to apply for the listing or trading of the Series A Preferred Shares on any securities exchange or trading facility or for inclusion of the Series A Preferred Shares in any automated dealer quotation system. As a result, we cannot assure you that an active after-market for the Series A Preferred Shares will develop or be sustained or that holders of the Series A Preferred Shares will be able to sell their Series A Preferred Shares at favorable prices or at all. The difference between bid and ask prices in any secondary market for the Series A Preferred Shares could be substantial. Accordingly, no assurance can be given as to the liquidity of, or trading markets for, the Series A Preferred Shares, and holders of the Series A Preferred Shares (which are perpetual equity securities and do not have a maturity date) may be required to bear the financial risks of an investment in the Series A Preferred Shares for an indefinite period of time.

  5. Anyone following the Farmland Partners soap opera [FPI, FPI-B] vs the anonymous hit piece 2 years ago on SA??

    Farmland Partners Inc. Announces Court Order to Unmask Defendants in “Short-and-Distort” Litigation
    [PR Newswire]
    PR NewswireMay 20, 2020

    Court Orders Rota Fortunae to Reveal True Identity and Comply with Discovery Requests; Denies Rota Fortunae’s Motion to Dismiss

    DENVER, May 20, 2020 /PRNewswire/ — Farmland Partners Inc. (NYSE: FPI) (the “Company”) announced today that the Honorable Kristin L. Mix, United States Magistrate Judge for the District of Colorado, ruled in favor of the Company in two critical orders issued on May 18, 2020 in Farmland Partners Inc. v. Rota Fortunae, et al., 18-cv-02351-KLM. This matter concerns the short-and-distort scheme set forth in Farmland Partners’ July 23, 2018 complaint whereby Rota Fortunae and his co-conspirators posted false and misleading statements on SeekingAlpha.com about Farmland Partners (the “Posting”) while taking sizeable short positions in Farmland Partners’ stock to earn substantial profits from the market’s negative reaction to the Posting.

    In a ruling granting Farmland Partners’ motion to compel discovery, the Court rejected Rota Fortunae’s arguments that he could proceed anonymously and ordered that Rota Fortunae could no longer hide behind his pseudonym and withhold the names of his co-conspirators. The Court held that Rota Fortunae may not prevent discovery into the merits of Farmland Partners’ claims by refusing to give Farmland Partners documents and other information that would reveal his identity. Magistrate Judge Mix rejected Rota Fortunae’s argument that the First Amendment protected his right to anonymity—holding the First Amendment does not protect defamatory speech—and after summarizing Rota Fortunae’s efforts to avoid discovery for nearly two years, ordered Rota Fortunae to respond fully to the Company’s discovery requests—and to identify himself—within 20 days and to sit for a deposition within 45 days.

    1. Im a fan of Rota. The article smelled of bs, and I bought 1000 shares or so In $17-18 range if memory serves and flipped very quickly for $3-$4 gain a share. Wish he would crank out another hit piece article to profit from, ha.

    2. Worth noting that SA made the initial Farmland Partners piece an Editors Choice pick.

      I have zero doubt that more than a few SA “analysts” engage in some form of front running of their pieces. SA doesn’t doing anything to police the practice (the disclosures are grossly inaccurate, even if true) and the writers are not subject to the kinds of policies that real Wall Street firms impose.

      Perhaps the FP case will have some positive benefit when there is some kind of a line drawn with respect to what SA prints.

      Somewhat surprising to me that SA was not named a party in the suit, even as a nominal party.

  6. Diamondback Energy (FANG) just priced a $500 million 5 year debt issue at 4.750%. Proceeds will primarily be used to refi a subs’ debt maturity this year.

  7. CBKPP is B/A 101.76/104.50. For anyone interested I’ve posted a sell for 42 at 102.25 which is last trade. Less than 100 shares so not visible on the ask side.

    This is just a clean-up trade for me – still holding a double position in CoBank preferreds and not selling them (CB is in top ten safest banks in North America).

      1. Number 6, I see the trade went through. Good for you and best wishes. Now just don’t post if you sell them at the current ask of 104.50 later today. lol

          1. OFF TOPIC ALERT….. Number 6 – Just curious about your moniker – anything to do with The Prisoner? I nicknamed my dog “Number 6” because of his constant escape attempts. 🙂

    1. A8, I was considering picking those shares up, but since I already have 300 CBKLP, decided to hold off.

      CoBank is on the list of strongest banks in the US, and also on the list of 50 strongest banks in the world!

      A SWAN investment, IMO. Great work picking them up, Number 6.

      1. inspy they are solid for sure – for me it was about tidying up the allocations as I have 2 full sleds one each of CBKLP and CKNQP. They’re not going anywhere.

        Have to say it was a bit fun doing a deal between the bid and ask with our compadres here. Keeping it in the family.

  8. Ripoff Moron has a new SA article out, recommending several Preferred issues.

    I was quite concerned about it, and prepared to seriously consider dumping if I held any of his recs.

    Fortunately, none of his recs are owned by me.

    1. I think some or all of the recommendations came from Preferred Stock Trader as I received an email from SA.

      1. You’re likely correct, Kapil. I see that many of the comments below the article were from him, in response to questions by others.

  9. Anybody notice ASRVP popped nearly 7 percent today? Shoulda, coulda, woulda bought more during the March meltdown. Any idea why? thanks

  10. LOL – I follow a small number of SA writers – but I also “follow” a handful of SA writers for laughs. In that regard I just got this notice from Brad T (not posting all of it, just the good stuff, lol):

    Please Read Immediately! Breaking (But Hopefully Temporary) News

    Dear Readers,

    That title isn’t a marketing ploy. Unfortunately, I have some news to share about the free side of my Seeking Alpha services. I’m going to have to cut back on them for a so-far undetermined amount of time. I’ll still be publishing some, of course. But not every day. Doing so had become “complicated,” unfortunately.

    For the record, this wasn’t a decision I came to all on my own. . . . . .

    Seeking Alpha has changed its policies concerning its Trending Articles – the content it promotes. While that is most definitely working in some writers’ favor, that’s not the case with me. My articles are now reaching a fraction of the audience they used to… to the point where I’ve had to do some evaluating and re-evaluating myself.

    My conclusion for the time being is to spend less valuable energy on the free side of my Seeking Alpha appearances. . . . .

    And then he of course goes on to pitch his paid service. LOL
    Nice laugh for late on a Friday

    1. That is absolutely hilarious! Is he really so stupid that he can’t see how transparent this?

      Probably not. I suspect there enough rubes out there, ready to be fleeced, that a guy with the morals of the marketplace can make a disreputable living.

      1. Brad aint dumb….What he really means is this…Less free articles means discerning investors (that wont pay for my service) who question my mediocre stock picking skills by commenting about all my failed picks, wont be able to embarrass me from the peanut gallery as often anymore.

        1. And also Grid, when he says “My articles are now reaching a fraction of the audience they used to” and blames it on SA not promoting them. what he really means is lots of people who used to read the articles have caught on to my poor record and no longer do

          1. Grid and Maverick, thanks for alerting me to this article by Bad Thomas. Clearly this was waaay overdue. Most of his stock picks are down 50% in the past year. I’m still down on a few of my preferred stocks, but did not recommend SPG @ 150 , FRT @ 120 and SKT @ 30.

        2. LOL,
          Wonder about the rest of the group that hangs around with him. Personally I am getting tired of SA pushing only certain authors day after day.
          Your not going to have as much fun now Grid.

          1. Charles, Well there is the main target worthless Pendragon and Moron to ridicule when the posts get through, lol.
            But today was a good if not calm day. Bought another 100 shares of WELPM at $124; tagged on Quniforms reco on DCP senior bondsand they jumped over 10% today; and PCG bankruptcy judge today ruled no more vote extension so that is good news for my preferreds.

            1. Thanks Grid, interesting read on the comments on those 2 Was trying to find Q’s comments but after a couple tries gave up.
              I would say after being up 10% and collecting one divy or two you might do a quick flip on those bonds.
              I am back in for now on KNOP as of Wed. hold for the next qtr. for me

              1. Charkes, Them damn bond desk jockeys are thieves so what they are being bought at is different than what they would give me. :(…First interest payment is in August being a 6 month cycle thing, so I probably will hold for now.
                Besides I dont have much high yield left. Yesterday I dumped all my UMH-B. Made 35 cents on a 2 day hold and the other half about $1.25 for a 10 dayish hold. Good enough for that..
                I actually just read insiders said the vote passing was a certainty and with judge ruling to end voting, its on the down side towards victory now with these. Ultimately the decision will be how many of these then plus 6% QDI shares am I willing to hold long term. As they arent exactly Wisconsin Energy of the West, lol.

              2. Charles, it’s Cusip 26439XAC7, traded to $95 yesterday but this is a hold for me. Remember this doesn’t trade flat. Bad economic news could send it toward $80 again and I’ll likely buy more if it does.

                My best buying experience is at Fido or IB. A few cents per bond traded and no back and forth BS.

                1. The $95 trade was only for 3 pieces aka $3,000 face. The seller sold them @$85 and Grid’s friends, the bond dealers, pocketed the extra $10/bond. So it is not clear what you can actually sell a reasonable quantity of them at. Ignoring the fact that this traded @ $120 on 3/6, it looks like the market thinks the default probability has increased. This is as opposed to margin call selling which we saw a lot of in March. Many issues that had margin call selling have recovered to their pre-virus levels. Some issues that have NOT recovered have materially increased default risks, like retailers, hotels, etc. This issue is in the middle ground, has not recovered, but has not fallen to the floor. No opinion as to whether it makes it back to $120 anytime soon. . .

                  1. Tex, they are such shameless thieves. But hey, even Buzzards and worms got to eat too, as Clint Eastwood said. I think midstream landscape especially of this ilk has changed. Im not holding my breath for $120, ha. I view it as a “relative safer“ high yield bucket purchase.
                    If it is really more an $85 current play than the couple one off trades Friday, I consider it way more value than their preferreds which I personally wouldn’t touch.

                2. Thanks Q,
                  Good to hear from you. Was looking over on SA for you, which caused me to tag Grid after I found him. For reasons Tex pointed out above I have never had much interest in bonds. I was looking more at the preferred , but haven’t followed them before so they look like a good short term trade at the right entry point.
                  I Looked at Bonds several times on TD and when I saw the spread reminded me of how Ag & Au are traded.
                  This could be Heaven or this could be Hell, We are programmed to Receive , you can check out any time you like, but you have to pay to leave

  11. NEW YORK, May 12, 2020 /PRNewswire/ — BNY Mellon (NYSE: BK) today announced that it priced an underwritten public offering of 1,000,000 depositary shares, each representing a 1/100th interest in a share of its Series G Noncumulative Perpetual Preferred Stock, with a liquidation preference of $100,000 per share (equivalent to $1,000 per depositary share), at a public offering price of $1,000 per depositary share ($1 billion aggregate public offering price). Dividends will accrue on the liquidation amount of $100,000 per share of the Series G preferred stock at a rate per annum equal to 4.700% from the original issue date to, but excluding, September 20, 2025; and from, and including, September 20, 2025, at the “five-year treasury rate” (as defined in the preliminary prospectus supplement) as of the most recent reset dividend determination date plus 4.358%. Dividends will be paid only when, as and if declared by the board of directors of BNY Mellon (or a duly authorized committee of the board) and to the extent that BNY Mellon has legally available funds to pay dividends. On September 20, 2025, or any dividend payment date thereafter, the Series G preferred stock may be redeemed at BNY Mellon’s option, in whole or in part, at a cash redemption price equal to $100,000 per share (equivalent to $1,000 per depositary share), plus any declared and unpaid dividends, without accumulation of any undeclared dividends to, but excluding, the redemption date. Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and BNY Mellon Capital Markets, LLC served as joint book-running managers for the offering; Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Lloyds Securities Inc., Mizuho Securities USA LLC, RBC Capital Markets, LLC, UBS Securities LLC and Wells Fargo Securities, LLC served as joint lead managers for the offering. The offering is expected to close on May 19, 2020.

    BNY Mellon intends to use the net proceeds from the sale of the depositary shares for general corporate purposes.

        1. The “best” of the BK preferred is the one and only exchange listed issues out there, BK-C. The yield/terms are better than the Trace issues.

          I like BK as an issuer and would buy a lot at right price. It’s rarely available at the right price. The new issue will be on my radar for sure. Buy list for the next crash. May not have to wait long.

      1. Thanks MCG… I just post the notices in case anyone is interested. Personally, I like to keep tabs on what is being offered, whether I can get my paws on it or not. Seems a bit misleading when they use the cookie cutter languange of “public offering price”.

    1. When looking at preferred, the details matter. Details I’m not liking:

      1. No zero backstop on the 5-year rate.

      2. Redemption, after the first reset, is any dividend payment date. To favorable to the company. By contrast, Canadian resets can only be redeemed on a rests date, i.e. only every 5 years.

      I like BK as an issuer but the terms on the new issue leave me cold. For me, it’s still BK-C when and if rates crash again.

  12. Possible Moody’s downgrades to Eaton Vance flavors and the like…

    The rating actions are as follows:

    Issuer: Eaton Vance Floating-Rate Income Plus Fund (EFF) – Series L-2 VRTP shares, aggregate outstanding of $19 million (190 share, liquidation preference of $100,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Floating-Rate Income Trust (EFT) – Series L-2 VRTP shares, aggregate outstanding of $80.0 million (800 shares, liquidation preference of $100,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Senior Floating Rate Trust (EFR) — Series A, B, C, D APS shares, aggregate outstanding of $75.8 million (3,032 shares, liquidation preference of $25,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Senior Income Trust (EVF) — Series A, B APS shares, aggregate outstanding of $37.6 million (1,504 shares, liquidation preference of $25,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Eaton Vance Limited Duration Income Fund (EVV) — Series A, B, C, D, E APS shares, aggregate outstanding of $216 million (8,640 shares, liquidation preference of $25,000 per share) — at Aa3, rating under review for downgrade

    Issuer: FS Global Credit Opportunities Fund (FSCGO) — Series 2023 preferred shares, aggregate outstanding of $100.0 million (1,000 shares, liquidation preference of $100,000 per share) and Series 2026 preferred shares, aggregate outstanding of $100.0 million (1,000 shares, liquidation preference of $100,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Invesco Dynamic Credit Opportunities Fund (VTA) – Series W-7 Variable Rate Demand Preferred shares, aggregate outstanding of $125 million (1,250 shares with a liquidation preference of $100,000 per share) — at Aa3, ratings under review for downgrade

    Issuer: Invesco Senior Income Trust (VVR) – Variable Rate Demand Preferred shares, aggregate outstanding of $125 million (1,250 shares with a liquidation preference of $100,000 per share) — at Aa3, ratings under review for downgrade

    Issuer: Nuveen Short Duration Credit Opportunities Fund (JSD) – Series A taxable preferred shares, aggregate outstanding of $70.0 million (70,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Nuveen Floating Rate Income Opportunity Fund (JRO) – Series 2027 term preferred shares, aggregate outstanding of $45.0 million (45,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Nuveen Senior Income Fund (NSL) – Term preferred shares, aggregate outstanding of $33.0 million (33,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

    Issuer: Nuveen Floating Rate Income Fund (JFR) – Series 2027 term preferred shares, aggregate outstanding of $55.0 million (55,000 shares, liquidation preference of $1,000 per share) and Series 2024 term preferred shares, aggregate outstanding of $35.0 million (35,000 shares, liquidation preference of $1,000 per share) — at Aa3, rating under review for downgrade

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