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FHLB issuances in real time. 5.55% for 5 yrs fixed callable monthly, I believe. Given rates are at a monthly low, I’m going to take a shot this won’t get called. I’m essentially selling an option to the issuer.
Note the floaters are coming at SOFR +12 -17 bps . They were +0 bps until recently. 17 bps is high . I’m just guessing it’s the expectation of a drop in SOFR soon.
oops I forgot the link
https://fhlb-of.com/ofweb_userWeb/pageBuilder/new-bond-issues-48
PSEC-A closed up 6.11% at $ 19.64 on above average volume and is holding up the gains after hours. I tried many sites to find recent news without success. There was an insider (CFO) purchase of the preferred late June and a big purchase of the common by the CEO in May.
I hope you bought a bunch at the bottom….i did..
Silver SLV down 2.4% 3:43 pm
PBI-B goes X div tomorrow…. $0.41875 coupon…. YTM taken into account accrued = 9.43% It does look as though the coupon capture crowd already made a move on this one the last 2 days, but you never know…. I’ve mentioned the very small PBI bond 5.25% 1/15/37 outstanding that trades much cheaper than PBI-B. It also has a super wide Bid/Asked spread but there are 15 offered at 62 for a 10.91%YTM and 31 behind it ever so slightly higher.. No listed bid but bid’s been hovering around 59 or less………. CUSIP 72447XAB3
CIMO now trading. All yours, Martin!
According to my calculations, looks like a good swap to CIMO:
CIMO ask (25.17) = 9.21% stripped yield.
CIMN bid (25.10) = 9.03% stripped yield.
Oh, I think you recently sold CIMN when was over par.
Not a big difference if you remember to account for the redemption in 5 years or possible call CIMO looks only a few cents better. I bought a little but not a lot at that price. Holding on to CIM-B for now.
MBG
Lower yield on a lower price? And not much to strip out.
Maybe I need another cup of java….
Gary,
I know it only started accruing on 8/19 so it’s only a few days of interest to strip out, but for my calculations I determined the stripped and YTC yields as though it started accruing earlier (8/1). That way resulted in having the 1st payment be for an entire 3-month amount (not sure if that’s the case, or if it will be a few days’ less than a full payment). That made each day’s accrual be the correct amount. That 1st payment accrues through ~11/14 (assumes 11/15 pay date).
I’m not certain of this way as being correct. I’m better at these calculations when it’s for a normal 3-month period. Then it’s just the formulas doing the work, without figuring out if/how to adjust them.
I think Martin knows his calculations and relies on his yields, though.
Less than 10% of the allotment has been sold so I wouldn’t be surprised if the price is sluggish as the underwriters hurry to bail out. I estimate a 15 to 20 cent advantage for CIMO and it’s been running 5 to 10 cents. A dime isn’t much but baby bonds are less volatile than perpetuals because of the redemption date.
9.250% per year. Interest will accrue from August 19, 2024 and will be payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year, beginning on November 15, 2024.
Franklin Resources Inc.’s stock was down 7.87%, making it the worst performer in the S&P 500 on Wednesday, after the multinational holding company said Ken Leech, co-chief investment officer of its Western Asset Management Co. unit, has taken a leave of absence to focus on an investigation into past trade allocations involving Treasury derivatives.
Franklin Resources
BEN
-7.87%
said Leech has received a Wells notice of potential securities-law violations from the U.S. Securities and Exchange Commission.
A Wells notice indicates that the SEC intends to recommend a civil action against the recipient.
The company might get a slap on the wrist for not properly overseeing him. Would they have losses being hidden they might have to disclose?
— Wonder where the 2 billion in the closed Macro Opportunity “strategy” goes now. Do they tell the clients. Or do they just switch the money into the Fredonia International Small Cap Value Fund and put it in a footnote in the next quarterly letter. Wonder if it will be a taxable event for customers.
—“Trade Allocation” is really old school. In the old days, they would sit in the brokerage back office and match paper order tickets depending on who needed gains and who needed losses. No need to worry about unused loss carryovers.
— Western Assets used to have some great CEFs. Its been decades since I’ve even thought of any WA CEFs.
Hail Hail Freedonia ! Groucho for prez !
Don’t call me an upstart. I thought my razor was dull until I heard him speak.
Hail Groucho ✅
regarding this comment
Western Assets used to have some great CEFs. Its been decades since I’ve even thought of any WA CEFs.
amen.. i got shafted when they repeatedly cut distribution on a non agency mbs cef they managed (DMO)
Have had good success buying WA (and any CEFs for that matter) at historically relevant discounts. Buy or own during premium periods and you are asking to be mistreated.
Oaktree Capital offering $380mm for majority stake in two of B Riley’s units.
I am extremely curious to see how this goes. When it comes to RILY I don’t believe it until it’s in an 8-K…
Can’t say it comes as a big surprise, JP Morgan Chase is calling their 5.55% Nov 29 2024 CD per August 30.
FYI: New issue Realty Income senior note today ~5.4% at Schwab, make whole
https://www.sec.gov/Archives/edgar/data/726728/000110465924090701/tm2421881-1_424b5.htm
Calling the preferred shares?
NewToThis –
I have owned many of the Realty Income preferreds in the past (D, E, and F) and they redeemed them all many years ago (last one was F redeemed in April of 2017) and never issued more preferred stock even when rates were at rock bottom levels. Don’t think they are fans of preferreds any longer.
Definitely a chance O-P goes by the wayside, as it was picked up by Realty Income with the Spirit acquisition.
“We intend to use the net proceeds we receive from this offering for general corporate purposes, which may include, among other things, the repayment or repurchase of our indebtedness (including borrowings under our revolving credit facility and commercial paper programs), foreign currency swaps or other hedging instruments, the development, redevelopment and acquisition of additional properties, acquisition or business combination transactions, redemptions of our outstanding preferred stock, and the expansion and improvement of certain properties in our portfolio.
As of August 16, 2024, we had a cash and cash equivalents balance of approximately $190.5 million and approximately $2.7 billion of availability under our $4.25 billion unsecured revolving credit facility after deducting outstanding borrowings under our commercial paper programs. In addition, we had an outstanding balance of $982.3 million under our revolving credit facility, including £707.0 million denominated in Sterling and €67.0 million in Euro, and $570.8 million of outstanding borrowings under our commercial paper programs, including €142.0 million denominated in Euro, each at August 16, 2024.”
I always knew my investment in their preferred shares was not likely to last a long time. Hopefully it is not the end of the line, but if it is, I can’t say it is unexpected.
Retail investors are caught in the crossfire of B. Riley Financial Inc.’s downward spiral.
The Los Angeles-based investment firm’s mounting problems, from regulatory probes to record losses, is shining a light on one of its favored fundraising strategies. B. Riley is a self-proclaimed leader in baby bonds — fixed-income securities issued in denominations small enough to appeal to everyday investors, rather than the million-dollar increments favored by institutions.
B. Riley raised more than $1.5 billion in recent years to strengthen its own balance sheet by selling baby bonds for as little as $25 per note. The acquisition of National Holdings Corp. in 2021 turbocharged the process, giving B. Riley a more direct pipeline to the portfolios of retail investors.
For buyers of the bonds, the investment has since turned sour. The securities, which face less scrutiny than typical fixed-income products, are low on B. Riley’s list of repayment obligations if it goes bust. That means the company’s growing woes have sent prices for the bonds plummeting — one such note has lost more than half its value in August and now changes hands at a yield of nearly 50%…
https://www.bloomberg.com/news/articles/2024-08-21/b-riley-baby-bonds-investors-face-losses-on-debt-products-used-to-raise-cash?utm_content=business&cmpid=socialflow-twitter-business&utm_medium=social&utm_campaign=socialflow-organic&utm_source=twitter
Has Bloomberg turned into the National Enquirer? Since when has Riley been considered a leader in baby bonds? And consider the implied innuendo directed toward naive readers who read “by selling baby bonds for as little as $25,” as if those Riley shysters have been selling unique vehicles they created for the sole purpose of appealing to uninitiated, unsophisticated frequenters of Wall St’s dollar stores? And since when are baby bonds facing less scrutiny than any other fixed income product or lower on B. Riley’s list of repayment obligations than any other unsecured debt they have if they go bust?
I am no apologist for B Riley and am quite glad I exited my investments in RILY more than 2 years ago, but this is sensationalist bad reporting that denigrates the entire world of baby bonds due to B. Riley. Bloomberg should be ashamed of itself.
Hey 2White.. I am certainly not a defender of B. Riley. All I can say is that I see B. Riley involved with many of the baby bonds in the HY names. This includes the mREIT and BDC baby bonds.
They certainly carved out their niche thru creating a network of marketing ala Michael Milken’s Drexel Burnham in financing high yield, low quality companies when other investment banks would refuse to sponsor with them, but then again so did Ladenburg and others. And they did not create a unique vehicle in the baby bond in order to do so, nor did they weaken the baby bond underwriting structure or credibility by doing so. If anyone wanted to argue in their favor one could argue they provided added protection to many of their issues by following a pattern of implementing initial optional calls that were at declining percentages above par. What I am objecting to is the tone of the article and its innuendo toward baby bonds. I believe RILY brought public many poorly financed companies that should not have been foisted on investors….. And they used baby bonds in the process, agreed, but there’s no mention of that aspect of IPO issuance as a reason to be critical of them – only this sideswipe of baby bonds.
2WR certainly these days we don’t seem to analyse what we read.
I would assume an article written by Bloomberg would be factual and unbiased, but I can see this article in a different light as you point out. I am no holder of anything RILY myself.
To answer the question – yes BBG is a gossip rag and leftist propaganda machine. In fairness it does say RILY is a “self proclaimed” leader.
That aside…
One interesting thing to note is that the RILYP prefs (eg) have far better change in control protection than the RILY baby bonds.
Owners of the RILYP can convert to stock in the event of a change in control but Baby Bond owners have no such protection.
RILY has a hypothetical “offer” by management for a buyout. In this buyout scenario (if it happens) neither the prefs nor the babys will be called by the company (as currently proposed) and will be left to trade in the markets.
The lesson here is that it pays to compare covenants between prefs and baby bond issues for the same issuer. Baby bonds are not always better in terms of protection.
This is not a reason to buy RILY prefs now IMO, just a data point to consider for other issuers.
no Riley positions as I have avoided from the start I am sure folks made money and interest trading the bb’s.. I think another astute investor named ‘Tim’ avoided them as well..despite the constant pumping by the penny chasers.
Bloomberg is my go-to place for update and headlines especially on international news, as well as BBN.CA their Canadian outlet, I get updates there well ahead of most other place, maybe Yahoo also is good. Barrons and the WSJ are a total waste of time. BeaLeftistBarrenCatlady
“BeaLeftistBarrenCatlady” – LOL! You made my morning.
If the platform proposals for price controls, a 45% capital gains tax rate, and a 20-25% tax on unrealized “gains” become law we will ALL be cat ladies pushing shopping carts!
Yawn.
When my net worth gets about 100M, I guess I will be able to deal with it.
https://news.bitcoin.com/insiders-report-report-kamala-harris-backs-bidens-plan-to-tax-unrealized-gains/
The amount of UHNW individuals selling assets and/or leaving the country would be unprecedented. The government is already spending way more than it gets in taxes, what happens when those tax revenues drop 50%? First a market crash from massive selling will ensure there’ll be no unrealized gains, then the outmigration will ensure there’ll be less income of all types to tax. We’re already on the wrong side of the laffer curve for individuals, raising tax rates for businesses and investors will just quicken the death spiral.
https://taxfoundation.org/data/all/federal/latest-federal-income-tax-data-2024/#:~:text=In%202021%2C%20the%20bottom%20half,of%20all%20federal%20income%20taxes.
https://fee.org/articles/the-laffer-curve-its-time-to-stop-laughing/
And income tax started on just higher earners too. We’ve seen how that has turned out. The issue isn’t who it effects, but the sheer lunacy to tax unrealized gains. Does that mean unrealized losses count for tax loss harvesting? Who determines what the unrealized gain amount is? If you have property, do you have to get it appraised yearly?
Nevermind, I found the 250+ page document. It’s even worse than I thought. Stocks would use the end of year value. Non-tradeable assets are assumed to be increasing in value at the 5 year treasury rate + 2%. If you dispute that, it’s on you to get an appraisal and prove otherwise.
Where’s the line to decide what a non-tradeable asset is? If I buy Magic the Gathering cards because I enjoy playing the game but the rare cards increase in value, is it an asset or is it just a game I play? If I buy a case of wine and hold it in a cellar and it turns out to be a good vintage and becomes rarer, is it an asset or is it just my personal wine for consumption? I knew a judge that would buy port and then let it age for 10-20 years in his cellar for his own personal use. The longer he held it, the more valuable it became as it aged. Every year would theoretically have unrealized gains on it, until he decided to drink it. Does he then get a refund for all the unrealized taxes he had to pay on it? Shouldn’t he get interest on that money that he had to give the government despite him never intending to do anything with the wine but keep it and drink it for himself? But it’s an asset that was increasing in value and subject to having unrealized gains.
The gold necklace you bought your spouse. Does 5yr treasury + 2% apply to that? The vehicle you bought? Normally cars depreciate unless it’s a rare sought after car, but it’s an asset. Do you pay 5yr treasury + 2% on that too unless you go get it appraised each year and have proof it’s declined in value?
Keeping track of what will be considered an asset and the unrealized taxes that have been paid on it, and its value each year, etc. would be a logistical nightmare for a person and the government would inevitably screw it up as well.
Also, the 44.6% is not for those with a net worth over 100M. It would effect those that have more than 1M income in a year.
Prior to lowering the corporate tax rate, inversions were increasingly common with US companies merging with Ireland companies to use the lower Ireland corporate tax rates. And it’s already ridiculous to tax the company + then when the company uses that money that’s been taxed to give you a share of the profits, that money gets taxed again.
Having worked for various state and local government entities, I have no desire to pay more in taxes than is necessary seeing the incompetency and waste. Government employees running personal errands, sleeping in stairwells or other rooms where no one was, playing games on their laptops, watching youtube on their phone all day, going to the casino… all during the work day. Others would duck out several hours early. The list goes on…
Bea – certainly not intended to describe readers nor did I mean to exclude WSJ and Barrons from this class of publications. Those labels apply to them as well.
With specific reference to RILY – I have been a seller of options on RILT stock since November – So I have been watching it closely and with that comes with reading the press carefully.
While I have been positioned to profit as RILY has fallen I can certainly say that BBG and WSJ have both been nothing but echo chambers for the shorts.
So yes they are gossip rags, and I remain short RILY call options.
“I remain short RILY call options.”
RILY +41% a few minutes ago…oof!
Have $3 per share capital gain on RILYM and still $6 more to go if it makes it to 2/25 maturity. I’m a gambling man on this one and looks good at least for today.
Good to live a little here or there.
Just let Tim managed the rest of your portfolio, and it will be generally risk free.
Nice gain! My guess is RILYM will be trading back where it was before the big sell off (~24) in a couple of weeks, or whenever they announce the deal they’re cooking up with Oaktree. That’s where I would suggest the long speculators exit the roller coaster…😉
Yes I noticed that.
I remain short RILY call options and still above water.
RiLY has been like this for a while.
RILYM up again. $6 in a few days to $22+. Getting closer $24 where it was at the beginning of the month. Dividend 7% at current price.
I know AW, crazy times, pay no attention to my nonsense. I wish I had the patience to trade these more volatile names including using options etc. as well as you folks;
side note I have trimmed risk considerably this week in mining/energy but sure wish there were more GAM-B and SR-A things around to load up on. best I could do is buy a little more CSR-C and put in the Roth w some of that not much tho, I agree w Leo Nelissen on SA who worries about the ‘cash trap’ as I am cashed up a lot. I am up 12.2% ytd and even 4% on cash on top of that for a year is a nice 8% or so gain in NW for 2yrs I guess.
Bea, Cash trap will be something in my to do list also this fall. I would say 30% of my CD positions and some corporates will likely come calling. So will be lurking around in a buying mood these next few months.
Speaking about nonsense, I like the term “cash trap.” Sounds like a great name for a country band. Appearing here tonight at Kid Rock’s Big Honky Tonk & Steakhouse, is Nashville’s finest, CASH TRAP!
Yes Bea–may have held a baby bond or two 5 years ago or more, but when Bryant starting dealing with scumming folks I was gone. Nice handle on this one ‘BeaLeftistBarrenCatlady’.
Regarding WTFC, there is a post on SA from 7/31 indicating that like the ESGR preferreds, there is no change in control provision to protect investors in a sale. Urgh. Thoughts?
Other Voting Rights
So long as any shares of Preferred Stock remain outstanding, the affirmative vote or consent of the holders of at least two-thirds of all outstanding shares of the Preferred Stock and all other series of voting preferred stock entitled to vote thereon, voting together as a single class in proportion to their respective liquidation preferences, given in person or by proxy, either at a meeting or, if permitted by our Articles of Incorporation, in writing, will be required (but may not be sufficient) to: …
consummate a binding share exchange or reclassification involving the shares of Preferred Stock or a merger or consolidation of us with another entity, unless in each case (i) shares of Preferred Stock remain outstanding or, in the case of any such merger or consolidation with respect to which we are not the surviving or resulting entity, are converted into or exchanged for preference securities of the surviving or resulting entity or its ultimate parent, in each case, that is an entity organized and existing under the laws of the United States of America, any state thereof or the District of Columbia, and (ii) such shares of Preferred Stock remaining outstanding or such preference securities, as the case may be, have such rights, preferences, privileges and voting powers, taken as a whole, as are not materially less favorable to the holders thereof than the rights, preferences, privileges and voting powers of the Preferred Stock, taken as a whole.
From https://www.sec.gov/Archives/edgar/data/1015328/000104746920002887/a2241578z424b5.htm#ii p S-35
At least that is something….
What do you mean “ESGR preferreds?”
— I don’t follow Wintrust. I didn’t see anything about a sale of Wintrust. It seems Wintrust just acquired Macatawa Bank not vice versa. Since Wintrust was not sold and is the surviving company, there should be no impact on Wintrust preferreds.
— Since Wintrust isn’t being taken over, sounds like the SA commenter is either wrong or trying to shake out weak sellers and pick up some cheap stock.
— In the real world, change of control for banks is not a worry bead. Banks usually go bank to bank. For a variety of reasons, banks tend to treat preferred owners better than PE sharks who take over insurers. Sometimes I think the best reason to buy a bank preferred is that they are less likely to go dark than a shipper, an insurer or a ute. Enough real bank worry beads: CRE, deflated Treasury bonds, interest margins, uninsured deposits, and erratic Fed interest rate policies.
– Always better to read the original prospectus instead of relying on a SA poster’s comment. Quantum Online is a good source. No interest in Wntrust. JMO. DYODD.
Maybe, because Preferred stock is Tier 1 capital for banks???
I skipped over your part of the explanation but did wonder the same thing – why was it being brought up in the first place? But I looked to see what I could find on protection anyway just because I already own WTFCP. Would also like to see a link to the SA reference because I didn’t find any July 31 article on Wintrust
I also still don’t know what “ESGR preferreds” refers to. Are you (Peter) in some way referring to the Sixth Street deal to acquire Enstar? https://finance.yahoo.com/news/sixth-street-leads-5-1bn-103516480.html
Did I misinterpret his comment? I should have said if taken private which seems unlikely.
Comment is from Rob G in Vegas
He is referring to the Enstar transaction which caused ESGRO and ESGRP to drop in price.
SA comment is as follows:
Banks rarely go private.
What usually happens is that they are acquired by a larger publicly traded bank. In that case the acquiring bank would assume the WTFCP preferred and its obligations.
But it is the same deal as the
ESGR preferreds if there is a privatization; there is no change of control language to protect you in a private takeout:
“For such purposes, our merger or consolidation with or into any other entity, including a merger or consolidation in which the holders of Preferred Stock receive cash, securities or property for their shares, or the sale, lease or exchange of all or substantially all of the assets of Wintrust for cash, securities or other property, will not be deemed to constitute a liquidation, dissolution or winding up of Wintrust.”
OK, I see the comment – It’s here – https://seekingalpha.com/article/4704247-very-undervalued-preferred-stock-from-wintrust-financial.
I don’t think you’re misinterpreting Rob G in Vegas’ comment now that I see it, but I’m not sure Rob is correct given the language I quoted from https://www.sec.gov/Archives/edgar/data/1015328/000104746920002887/a2241578z424b5.htm#ii p S-35 You might want to ask Rob G how he interprets that language regarding protection for WTFC preferred shareholders….. It may not be the strongest language ever written I suppose but it sure looks as though it gives preferred shareholders a modicum of control thru voting as to what they will allow to happen in a takeover…. Follow up with Rob and see if he had read this language and if not, if it changes his opinion that “it is the same deal as the ESGR preferreds if there is a privatization [of WTFC]; there is no change of control language to protect you [the WTFCP shareholder] in a private takeout.” I don’t think it is.
Let us know if you get a response…
> For a variety of reasons, banks tend to treat preferred owners better than PE sharks who take over insurers. Sometimes I think the best reason to buy a bank preferred is that they are less likely to go dark than a shipper, an insurer or a ute.
I very much agree. For some companies there is a very real incentive to hose the preferred holders; with banks it would signal that the end is nigh so (as you say, among other reasons) they are less likely to do it.
I’m puzzled about the status of RITM-A. Its dividend was supposed to start floating at a margin above LIBOR, beginning with the dividend payable yesterday, 8/15/24, which happens to be the first date on which RITM-A can be called. (Per Quantum Online: “From and including 8/15/2024, dividends will be paid at a floating rate of the Three-Month LIBOR plus 5.802% per annum.”) Yet, the dividend that RITM declared to be paid on that date was the fixed dividend that it has paid before. I also see no indication that this preferred stock has been called.
Could it be that RITM-A , like certain other issuers, is taking the position that with the demise of LIBOR it is just going to pay a fixed dividend rather than paying a dividend that floats at a margin above SOFR? If so, shouldn’t that be disclosed? I don’t own RITM-A any more, but I do own RITM-C and RITM-D. The same issue would apply to them. Can anyone explain this?
Nimzo
Where did you see that the dividend was declared? The brokerage sites and intermediaries still show the previous dividend which they normally do until the next dividend is officially declared. I’m not expecting a problem but you never know until it’s official.
I think you’re confusing what you’re reading because what you describe I think is right…. As you say, “Its dividend was supposed to start floating at a margin above LIBOR, beginning with the dividend payable yesterday, 8/15/24.” The emphasis should be on BEGINNING. The last fixed rate is paid on 8/15 and that means the new rate will start accumulating on 8/15 for the NEXT coupon which will be 11/15. Most likely the new rate was set 2 business days prior to 8/15 and it will begin accumulating at the new rate beginning 8/15 running thru 11/14… That’s assuming they have adopted SOFR but I don’t know either way whether they have or not. I’ve not tried to check.
They did – from latest 10q CHANGES TO LIBOR
On March 5, 2021, Intercontinental Exchange Inc. (“ICE”) announced that ICE Benchmark Administration Limited, the administrator of the London Interbank Offered Rate (“LIBOR”), intended to stop publication of the majority of USD-LIBOR tenors (overnight, 1-, 3-, 6- and 12-month) on June 30, 2023. On January 1, 2022, ICE discontinued the publication of the 1-week and 2-month tenors of USD-LIBOR. In the US, the Alternative Reference Rates Committee has identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for US dollar-based LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by US Treasury securities and is based on directly observable US Treasury-backed repurchase transactions.
Rithm Capital completed its transition from LIBOR to an appropriate alternative benchmark, mainly the SOFR, in June 2023. We do not currently intend to amend our 7.50% Series A Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series A”), 7.125% Series B Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series B”), or 6.375% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock (“Series C”) to change the existing USD-LIBOR cessation fallback language.
Is that what they;re saying?
Quantum Online says that the new floating rate will be paid “from and including” the 8/15 dividend. That is the language used in the first paragraph of the Prospectus Supplement issued by the company on June 25, 2019, which I reviewed just now on EDGAR. It also says, by the way, that holders will be entitled to receive fixed dividends at an annual rate of 7.5% or $1.875, “from the original issue date to, but excluding, August 15, 2024…”. The meaning seems clear — holders get the fixed rate up to, but not including, 8/15, and will be paid the floating rate from and including” 8/15. But the quarterly dividend the Board declared for the second quarter of this year, payable 8/15/2024 (https://ir.rithmcap.com/investors/news/news-details/2024/Rithm-Capital-Corp.-Declares-Second-Quarter-2024-Common-and-Preferred-Dividends/default.aspx), $.46875 per share, is exactly 1/4 of the $1.875 fixed dividend. Thanks for responding to my post, but I think the mystery remains unsolved.
Nimzo
Nimzo – this is really boilerplate language applicable to practically every bond or preferred…. There’s another important part of the language in the prospectus that you quoted that has to be taken into account. It reads, “Holders of the Series A Preferred Stock will be entitled to receive cumulative cash dividends (i) from and including the original issue date to, but excluding, August 15, 2024 at a fixed rate equal to 7.50% per annum of the $25.00 per share liquidation preference (equivalent to $1.875 per annum per share) and (ii) from and including August 15, 2024, at a floating rate per annum equal to three-month LIBOR plus a spread of 5.802% per annum. DIVIDENDS WILL BE PAYABLE QUARTERLY IN ARREARS on or about the 15th day of February, May, August and November of each year, when and as declared,…” That’s pretty standard. What it means is that dividends accumulate from the dividend payment date until the day before the next dividend payment date and they are THEN paid on that dividend payment date…. So what gets paid on 8/15 is the amount of dividend accumulated from 5/15 until 8/14. What will be paid on 11/15 will be what’s accumulated beginning 8/15 and going thru 11/14.
If you go further into the prospectus https://www.sec.gov/Archives/edgar/data/1556593/000114036119011685/nt10002728x3_424b5.htm#tDESA under Description of the Series A Preferred (p S-22) you will see , ““Dividend Period” means the period from, and including, the immediately preceding dividend payment date to, but excluding, the applicable dividend payment date, except for the initial Dividend Period, which will be the period from, and including, the original issue date of the Series A Preferred Stock to, but excluding, November 15, 2019 (long first Dividend Period).” Again this is pretty much boilerplate and when you couple that with knowing the dividends are paid IN ARREARS, then you realize that the first floating rate payment actually occurs with the 11/15 payment…
Again, this is not unusual… I’m sure exceptions probably exist out there somewhere but it’s pretty safe to say that practically all dividends and interest on quarterly pays are treated this way… Hope this helps
BTW, that same P S-22 tells you that the ““Dividend Determination Date” means the second London Business Day immediately preceding the first date of the applicable Dividend Period.” That means that if you know the SOFR rate as it was on August 13, you can pretty well calculate what the first floating rate coupon payment will be on 11/15 without having to wait until they decide to declare it (that is as long as they do eventually declare it). 5.11809+.26161+5.802=11.1817%
Thanks for the education, 2wr. I’m a bit new to this. I learn a lot on this site from you and others.
All the best,
Nimzo
Remember RITM-D is pegged to the 5-year treasury rate plus 6.223.
I succumbed to call dread today and pre-bought a replacement agency. First time under 6% in many, many months. If FHLB is calling 5.34% (per Westie), why is it issuing new 5.8%?
New issue at Schwab today, min. 10, 100.025:
FHLB 3130B2BD6 5.8% 8/22/44, call 8/22/25
Does anyone know what happened to IIPR-A, down 9% today?
Have been wondering the same..no obvious news
I can’t find anything, no filings on EDGAR, no news from the company website, nothing. It may be getting called.
not sure even if it gets called at 24.9 it would be fine if you buy here, it is callable
change of control provision as well so some protection in a sale
Jimmy – If memory serves, I believe the float on this is very small. It’s pretty close actually to the current trading volume on the day. So they have in theory traded nearly the whole float all morning just under par. Has to be a call or possibly a new offering. This preferred has never traded under par even going back to 2020.
assume call at 9% i mean how much higher are they going to issue something?
if they are issuing something higher than that w/ a 3b market cap I’d be interested tbh
https://investors.innovativeindustrialproperties.com/press-releases/2024/08-05-2024-210746138
“Financing Activity
Upsized IIP’s revolving credit facility to $50.0 million, which remains undrawn as of today.
Terminated prior “at-the-market” equity offering program and entered into a new program (the “ATM Program”) for sales from time to time of shares of common stock, including on a forward basis, and 9.00% Series A Cumulative Redeemable Preferred Stock, $0.001 par value per share (the “Series A Preferred Stock”) of up to an aggregate offering price of $500.0 million. As of today, IIP had not sold any shares of common stock or Series A Preferred Stock under the ATM Program, including on a forward basis.”
Maybe IIPR is selling new IIPR.PRA shares at par?
That’s exactly what I think is happening. I read through a 424B5 issued on 5-24-24, and they stated they could issue more preferred in the same class.
did they have the preferred on an ATM before this or was it just a common stock ATM?
thx
I don’t understand why anyone would pay 27.21 for a security that is immediately callable?
Guys, any idea why ECC-D performs so poorly lately? Cannot find info on whether they are tapping the issue with new shares so might just be the relentless seller doing his thing.
I asked the same thing yesterday. Blame me… I keep hammering the bid for 100 shares a couple cents lower each time and it’s been following me for two days. I assume someone/fund wants out.
The fund (ECC) or other preferred (ECCC) really isn’t moving. If you are afraid of default, then the term should be falling as well. So, either sellers are afraid of duration or its an idiosyncratic holder wanting out. I’m guessing the latter.
ecc.prd/pgx pair new all time low (underperform) eccc/sjnk pair has actually seen eccc outperform since october 2023 but over the last week has gone from 2 sigma rich to cheap (underperform) ..same story for eccx, eccv
ECCF- shorter maturity/term, curr yld 8.05, under par. Haven’t run YTM #s.
Apparently others noticed this one too; a newsletter writer may have issued a buy today. Volume exceeding 150k and price now at 19.15, still a pretty good deal here.
Today’s SEC filing about increased at-the-market sales of ECC common and preferred shares.
https://www.sec.gov/Archives/edgar/data/1604174/000110465924090509/tm2421913d1_424b3.htm
FWIW, I hold the ECCV and ECCX notes.
RILY- & treatment of bonds, preferreds- to continue to report & more- posted at Fidelity:
Aug 16 (Reuters) – BRYANT RILEY:
* BRYANT RILEY: PROPOSING TO ACQUIRE ALL OF THE SHARES B RILEY FINANCIAL INC THAT I DO NOT PRESENTLY OWN FOR A PURCHASE PRICE OF $7 PER SHARE
* BRYANT R. RILEY REPORTS 23.2 % STAKE IN B. RILEY FINANCIAL, INC. AS OF AUGUST 15- SEC FILING
* BRYANT RILEY: PLANS TO FINANCE DEAL WITH DEBT AND, POTENTIALLY, EQUITY FROM THIRD PARTY CAPITAL PROVIDERS
* BRYANT RILEY: PLAN ON CONTINUING TO REPORT CO’S FINANCIALS TO SEC AND BONDS AND PREFERRED’ S WILL CONTINUE TO BE PUBLICLY TRADED
* BRYANT RILEY: CONFIDENT IN B. RILEY FINANCIAL’S ABILITY TO CONTINUE TO SUCCESSFULLY EXECUTE OUR STRATEGY
* BRYANT RILEY: POSSIBLE TO CONTINUE TO LIST ON SECONDARY EXCHANGE IF THERE ARE SHAREHOLDERS THAT WOULD LIKE TO PARTICIPATE IN THIS DEAL
* BRYANT RILEY: DO NOT INTEND TO PROCEED WITH PROPOSED TRANSACTION UNLESS IT IS APPROVED BY SPECIAL COMMITTEE OF B RILEY FINANCIAL
* BRYANT RILEY: DEAL SUBJECT TO NON-WAIVABLE CONDITION OF APPROVAL OF MAJORITY SHARES OF CO NOT OWNED BY BRYANT, SENIOR MGMT, OR AFFILIATES
* BRYANT RILEY: EXPECT SPECIAL COMMITTEE OF B RILEY BOARD WILL CONSIDER PROPOSED TRANSACTION AND MAKE RECOMMENDATION TO THE BOARD Source text for Eikon: Further company coverage:
What’s that squealing sound…?
Oh- the 60+% of the float shorts.
Gary:
You truly believe the shorts in RILY are “squealing” after the common has gone from $55 last Summer to $4.75 yesterday…and then back up to $6 today?
Those players have coined money on this crap company.
But I do wonder if there is an opportunity in the RILY preferreds RILYP and RILYL? Both of those have change of control protections if this $7 common deal goes through.
They are trading up 70% today while the longer maturity baby bonds are mostly up 25% each.
yeah..they have really got killed..please ..we should all be so fortunate
Storm warning…..
FHLB just called 313GYP8 5.34% maturing 5/26.
Check your portfolio
CD’s/Bills are going to be called if current rates for that maturity are lower than existing issues
Bryant Riley offers to buy rest of B.Riley for $7/share (Bloomberg)
It’s under $6 midday Friday so maybe buyers don’t believe him. It is tempting.
I did buy RILYZ when it dropped below $7. My GTC limit of $6.30 didn’t work but I did get some at $6.40. Now I just need to wait 4 years for it to mature -ha.
Gee what could go wrong here? “Riley has said financing would not be a problem. The deal will be financed with debt and potentially equity from third party capital providers “with whom I have deep and long-standing relationships,” he said in a filing.” https://finance.yahoo.com/news/b-riley-co-founder-prepares-124927644.html
With Bryant’s recent track record and investments made, I bet lenders will be lining up just itching to lend money to him to buy the rest of RILY using Other People’s Money.
Westie-
How about a legitimate cusip?
Dogs Of Dow Barking Loudest Yields…
Verizon……6.7%
Dow………..5.31%
Chevron…..4.69%
Cisco………3.57%
IBM………..3.48%
J&J…………3.17%
Coca-Cola..2.9%
Amgen……2.87%
Merck……..2.82%
Home Depot…2.63%
Newbie, where might PFE, WHR and BMY fit on your list?
Bryant Riley offers to buy rest of B. Riley for $7/share. (Bloomberg)
I see his securities company bought abt 100k shares above 10.
Interesting: Letter doesn’t say if the offer is subject to a financing condition,
and then the CEO reports he owns 23% of the shares…which is what he already owned.
If any company can navigate a way out of the situation RILY is in, it should be a company that specializes in doing just that for others.
OFC that didn’t work for Lehman.
I’m not sure how to evaluate this but I’m long debt from yesterday
RILY: financed with debt. potential equity
Nothing I see abt committed financing. Super important.
Not worth $7 if not committed.
RILY NOT SUBJECT TO FINANCING CONDITION
maybe worth a lot more than 7 now
https://finance.yahoo.com/news/b-riley-founder-offers-buy-125125859.html
Nothing like running a company into the ground from $50/sh and then offer $7/sh.
RILY opinion:
Financials have “jump to default” risk
Sometimes you fly too close to the sun ☀️ and get burned. I have no position in RILY, but EVERYONE could have seen this on the horizon…
I bailed a long time ago. Too old to have that kind of excitement in my life…… Also have enough problem children in my portfolio already!
Azureblue—yes everyone should have had suspicions at least. As with many investments timing is everything. If you bot RILY years ago you could have made a killing–obviously things change when free money is gone.
Please tell me that nobody on this site has any kind of long exposure to RILY of any kind!!!!
Folks it is terminal.
If you have money in any RILY account I would suggest that you move it.
I figure most people on this site here are 7 or 8 figure net worth, mostly in safer investments, so sometimes you need to have fun and live a little
If you want to have that kind of fun then sell this toxic garbage dump short.
I have selling options on RILY since November and sold a bunch more today.
RILY is completely toxic.
“I have selling options on RILY since November and sold a bunch more today.”
Ooof!
I sold my RILYZ last fall. I wish I understood how bad the situation was before I ever bought that position.
There was an interesting option buy for puts two days before the notice, and I bought a $100 worth just for sh(ts and giggles.
Those options turned into $2,000.00 like 2 days later….
I am somewhat new to this field of investing. Are companies that are high peril that I should see coming?
Yes, John. There are.
Problem is that there is often a lot of disagreement about which ones they are.
if you read all the recent posts about RILY, you see that many (most?) folks on this board don’t want to swim in that cesspool (including me). However, there are others who see an opportunity among all those floating lumps…
Everyone has to pick a strategy they are comfortable with. Not always easy.
One thing that helps is to read this board. There have been more than a couple of posts that have provided “headlights” on upcoming problems/opportunities/redemptions, etc.
Oh, and don’t forget to tip Mr. Tim. He pays for most of this site out of his pocket.
Meh…RILYM looks insanely undervalued @ $15 with 6 months to maturity.
Lots of short selling smoke, but still no fire. For those inclined to take on some risk, buy the rumor of B.Riley’s imminent demise.
> Lots of short selling smoke, but still no fire.
The fire is the balance sheet, which the company itself provided you.
More like a balance sheet that most people on Wall St. don’t understand.
https://seekingalpha.com/symbol/RILY/balance-sheet
So have at it Ochongusu…where is the hole below the water line that sinks RILY before February?
Citadel, did you buy at $15? If this is an insanely undervalued play, surely you took a stab?
No, but I got in @ $13.24 this afternoon and we’ll see where it goes…
> where is the hole below the water line that sinks RILY before February?
To find out, you’d have to look through the various credit agreements and see if RILY is breaching any loan covenants based on the applicable balance sheet or profitability ratios. If they are, there’s a good chance you see a bankruptcy filing. Remember, at the moment RILY has negative shareholder equity.
I haven’t had the time or inclination to do the work of looking at the loan docs, but under the circumstances anyone who owns any RILY securities without having done so is playing roulette more than investing.
Nice bet. Hope you’re enjoying a cigar with your morning coffee today.
“looks” and “insane” are the key words. The equity is negative, and that’s assuming you don’t write off all the goodwill of $400 mill +.
For those who don’t recall accounting, goodwill is the excess of purchase price over the identifiable value of the net assets purchased. It only exists from a purchase transaction, and from an accounting theory point of view it represent EXCESS earnings capacity of those assets.
Seems to me there’s excess loss capacity.
I’ve got a few long/short hedges on the bonds. Long the N, short the G
LT said: “For those who don’t recall accounting, goodwill is the excess of purchase price over the identifiable value of the net assets purchased.”
LT, the balance sheet of many companies has changed dramatically over the last few decades. They have changed from heavily tangible assets to intangible assets like goodwill. Software companies like Google, Facebook, Microsoft for example do not have large bricks and mortar factories. The incremental cost of goods sold (COGS) for software is vanishingly small. Compare that to say Ford or GM with their large physical plants.
None of this is a defense of Rily, but we cannot universally condemn companies with lots of goodwill on their balance sheets.
We do not own RILY common in any account, but do have about a .001% allocation to one of their baby bonds. Yeah, due to an error in order entry.
I am working on a larger post about default probabilities of baby bonds which will address some of these issues.
Hi ,
No condemnation for having goodwill. I’m merely saying the way you get goodwill on the balance sheet—the only way–is by purchasing another ongoing business for more than the identifiable value of it’s assets.
If you are then writing down the value of the purchase for whatever reason, you are likely writing down goodwill. RILY has (from scanning yesterday) $400+ mill in goodwill. I would think all of their writedown is of goodwill, The equity prior to the writedown was less than the total of goodwill. Hence they will have negative equity all other things being equal.
In addition they have had losses the past two years. I did not delve into the loss at all.
Any dividends RILY now pays will be return of capital as they have no retained earnings and no equity.
I actually think at current price of 30% of par the senior notes are worth a small gamble, but the history of financials in “trouble” isn’t good. I did not even look at lines of credit but they say they have adequate cash and short term investments that would appear to cover paying off some of the debt.
Heck, I’ll take a shot with you on debt at these levels
BTW I am expressing an opinion that may be wrong. Don’t ever trade on what someone here says. Do your own due diligence. There’s a reason I’m losingtrader
Undervalued??? Hard to say until we get some financials released by Riley…. but this already known:
* Announced preliminary Q2 loss between $435MM to $475MM ( $330 million to $370 million from a noncash write-down in the indirect parent of Franchise Group investment and a related loan)
* Total Equity as of Q1 for $228MM – unless something else is disclosed, the Q2 loss announced would more than wipe this out
* Dividend on common paused ($60MM annual savings)
* Delay in filing their 10-Q for June 30 (was due Aug 9) “delays in finalizing the valuations of certain loans and investments.”
* SEC expanding their probe in the handling of risk disclosures as well as Founder Bryant Riley’s relationship with Franchise Group (FRG) CEO Brian Kahn
Any one of these is concern, in the collective one doesn’t wait until the ship has sunk to head to the lifeboats. This is second blow RILY has taken this year, let’s see if they can get up and keep fighting.
Huh?…baby bonds trading for nearly 25 cents on the dollar (RILYZ 6.90) ..are you long?
I went long RILYM yesterday @ $ 13.24. Its up +40% pre-market this morning.
We are now getting CD’s called with 5.05% coupons from both Chase and B of A. That is the new water mark and I would assume all callable issues >=5.05% coupons will be called on their next call date. Obviously all of us CD buyers have missed the peak coupon rates for the time being, but I would only buy non-callable ones at this point. One notable exception, we have bought many low coupon callable issues on the secondary market that had outsized returns. We have several with less than 1.0% coupons and heaven help us if we get into a situation where they are called. Seems that most investors do NOT want to wait until maturity to get most of the return.
Discover Bank is still offering that 5.10% 9 month CD.
And Synchrony 5.15% . That’s changed from what had been a 13 month offering at 5.15%
Sallie Mae has a 13 month at 5.2 and other ones at 5.15 and 5.1
Still a few larger credit unions out there offering decent rates.
US Alliance and Nasa Federal as examples.
US Alliance offering a 24 month CD at 5%
Comments on LANDM (5% term preferred, due 1/31/26, pays monthly, REIT).
The price of parent LAND has been gradually sinking toward the March 2020 low. Not a good look when many financial stocks are strong.
The YTM of LANDM at today’s close 24.52 is 6.5% (my methodology). At 24.30 the YTM is 7.2%. With maturity just under 1.5 years, the #1 (only) reason to buy LANDM is YTM.
R2S,
I think YTM is usually my Number 1 reason to buy, not just in the case of LANDM. Long LANDM
Gum-
After an 8-month apprenticeship here in preferreds/BBs, I’ve turned my attention to the wonders of YTM. I hope to land some whoppers.
When a convenient test for cholesterol was developed, the medical community had a new hammer to pound every nail. With YTM recently added to my spreadsheet, I can’t help but admire my new hammer.
good comment..landm/sjnk pair trading near fair value (1yr horizon)..was 2 sigma cheap in december
Bank of America is calling their Dec 1, 2025 5.50% CD per August 29 (callable since May 29th).
It paid $13.86 per $1000 per quarter; sure was nice while it lasted…
Pierre-
Ugh! Calling a 5.5% CD. Bad precedent. After checking, I don’t own any CDs at 5.5% or higher that are callable.
UBS to Take $50 Million Annual Earnings Hit as it Raises Rates on Cash Sweeps…
cubb/sjnk pair now trading near bottom of range prior to recent plunge
Are you trading the stock against an ETF as a long/short?
good question.. I use my pairs trading model for purposes of valuation in my long only bond/preferred portfolio.. I do swap between the etf and the individual bond/preferred
I’m feeling like CUBB is just another sub BB in the swamp.
Anyone holding LANDO may want to swap for LANDP as there is about a $1 difference.
Thanks. Was able to turn my 100 LANDO into 105 LANDP.
Jtrader…… You got me to thinking about my 1000 shares of LANDM that I bought some time ago and stuck away. I have about $1 per share capital gain. If I sell LANDM and buy LANDP I get 1167 shares of LANDP at today’s closing prices. My monthly income goes from $104 to $145. The differences I see is LANDP has no maturity with the III dividend safety rating of C versus LANDM matures in 1/31/2026 and dividend safety of B. I wonder if $41 per month is worth it for what appears to be a little more risk?
I own both LANDM and LANDP. Remember that LANDM will also get the difference from the current price and the $25 maturity so you have to figure how much interest plus gain when figuring your overall income. Of course LANDP may appreciate or depreciate with changes in interest rates and company prospects, where LANDM will eventually be redeemed at $25. I hold LANDP or LANDO just to be able to swap them when it is favorable to boost returns.
I own LANDM and fully expect them to be redeemed on 1/31/26, however they do have an unusual clause in the prospectus language stating, “In addition, if we fail to redeem or call for redemption the Series D Preferred Stock pursuant to the mandatory redemption required on January 31, 2026, the dividend rate on the Series D Preferred Stock will increase by 3.0% per share per annum to 8.0%, until such shares are redeemed or called for redemption.” There doesn’t seem to be any greater explanation of that clause that I see, so they theoretically could allow LANDM to become a currently callable 8% perpetual without any further penalty…. I keep wondering why they put that clause in…. 8% would be high enough to expect redemption right now, but it’s not that far away to where it might not end up being considered so punitive by them as to not to consider leaving them outstanding. LAND itself sure hasn’t been experiencing any love in the market recently, that’s for sure………
That is a very good point. If they were to issue a perpetual now they probably would have to pay close to 8%, but not redeeming LANDM upon maturity would hurt their credibility, so unless the capital markets are seized up, I think they will redeem LANDM on time. In the meantime I will look to sell LANDM as it approaches 25.
@JT LANDO LANDP
I swapped mine too. Thanks.
Greg posted that “Central Parking [actually Metropolis Technology Inc] has updated and corrected the pay-out on it’s bond (ticker CRLKP).” (https://innovativeincomeinvestor.com/reader-initiated-alerts/comment-page-15/#comment-124866)
Fidelity finally posted the 01 July dividend on 18 July. It was a partial payment, not the full coupon (as noted elsewhere). I have not received anything else since then.
Has anyone actually received a corrected payout on CRLKP?
I have not.
Mine was both posted in error at 30.12 and then corrected as 32.81 on 8/8
at Schlub.
Gary, when was the $30.12 originally posted?
(Trying to figure out whether Fidelity is tardy in posting–since they took 17 calendar days to post the 01 july dividend)
The correct CRLKP dividend landed at Fidelity today (together with a reversal of the incorrect dividend).
Bankruptcy – Lumber Liquidators filed bankruptcy, closing 94 stores
This is the second time for them isn’t it?
I think they were in chapter 11 before. this sounds like chapter 7 liquidation (pardon the pun).
Private, in another life they were one of my customers and a competitor.
Heard too many horror stories. They would sell the flooring and come to us for the trim accessories.
Maybe they should change their name to Lumber Store Liquidators.
Bloomberg Article Today — “B. Riley Faces Wider Probe on Risk Disclosures, Ties to Kahn”
RILY
Total Liabiliites now exceed Total Assets
There is an ongoing SEC investigation with subpeonas (disclosed yesterday)
They just NTd their 10Q (again)
There are $600M of secured loans sr to the baby bonds and prefs
There is about $700M of worthless goodwill and intangibles
They are likely in violation of covenants on secured loans
The loan and securities portfolios likely still have further markdowns required
Common dividend has just been eliminated
This is a very long list of sell signals and this is not the complete list
B Riley – Ooops
The never-ending story– more Fed probe, dropped common div, off 50% ( or more? ) Income issues whacked.
I’m glad I ignored all the pump articles on SA for RILY and its preferreds.
Sold RILYZ on all the warnings in May at $17.08. Today under $10.
good comment.. me too ..liquidated a baby bond RILYZ several months ago ..was a favorite of “yield hogs” on S/A
Notice CNBC is not commenting on Riley.
CNBC doesn’t care about this. It’s all AI and bitcoin. I have never heard any analyst even mention a preferred stock. If you are over 40 don’t even bother.
Cramer addicted to NVDA.
Anyone know if rilyz dividend is now suspended?
Just common divs suspended (for now).
Plus Z is a note – pays interest, not dividend
Are they required to continue the same rate of interest payment as long as they are solvent? If so, would it be a giant risk to get back into the notes now yielding 14% ?
Lucky – What would it mean to you if you knew that the YIELD TO MATURITY on RILYZ is currently higher than 37%? You earn 37% annually (inclusive of your 14% current yield) if Z pays off in 2028…. Knowing that, what do you think the prevailing opinion is as to whether or not it’s a giant risk to get back in now? That being said, I’ve seen worse make it thru meltdowns like this but RILY has created this one all by themselves.
It’s a baby bond – the interest payments can’t be suspended.
On some baby bonds, they actually CAN suspend, but Riley didn’t put that feature in their bonds.
They all have a 30 day grace period before it is considered an event of default.
Does the statement of 275mm cash and cash equivalent mean RILYM, 90% due in nov, is probably safe?
rilym matures end of feb next year. it’s better than a lottery ticket — maybe!
As we saw with rilyo, I believe 90%of the float must be called 90 days in advance of the maturity.
Not 90%, but for RILYO there were provisions its credit facility that the amounts in excess of $25 million must be redeemed 91 days prior to the maturity of the notes. I think it was ~80% or so if memory serves based on what was redeemed as part of the earlier partial redemption.
https://ir.brileyfin.com/2024-01-30-B-Riley-Financial-Announces-Partial-Redemption-of-6-75-Senior-Notes-due-2024
I haven’t seen anything to confirm but my guess is same provision with RILYM. RILYO was smaller issue (3.48 million shares) that RILYM (4.6 million shares) so that means, if provision for their credit facility applies to RILYM a more significant portion to be repaid in November. So it may be closer to 90% for RILYM.
in a bankruptcy generally senior debt is treated “pari-passu” (equally)
CIMO incoming
Chimera Investment Corporation
% Senior Notes due 2029
https://www.sec.gov/Archives/edgar/data/1409493/000119312524198445/d731288d424b5.htm
They just came out with CIMN. Several of these mREITs issued baby bonds in pairs a month or two apart. The latest tend?
Got it J. Thanks much
Maybe to pay off their CIMprB???
No mention of paying down anything with proceeds in Use Of Proceeds
Hawaiian Electric Q2 conference call, Maui Fire Settlement, “going concern” risk, pertinent to all holders of HE preferreds.
***********************************************************************
As Scott noted, the payments would begin after judicial approval of a final settlement and are expected to begin no earlier than mid 2025. We intend to finance the settlement payments through a mix of debt, common equity, equity-linked securities or other potential options, although there can be no assurance at this time as to the availability or terms of any such financing.
Because the plan is still being developed to finance the payments we’ve agreed to under the settlement, HEI and Hawaiian Electric are required to disclose that there is a substantial doubt regarding each company’s ability to continue as a going concern.
Accounting rules require that a financing plan be probable of being implemented in order to resolve the conditions giving rise to the substantial doubt disclosure. Once the financing plan is sufficiently progressed, we expect the going concern issue to be resolved. As a result of the going concern assessment, the utility dividend to HEI has been suspended.
https://finance.yahoo.com/news/q2-2024-hawaiian-electric-industries-121046700.html
Atlas Corp. reported earnings results for the second quarter and six months ended June 30, 2024. For the second quarter, the company reported sales was USD 603.2 million compared to USD 437.1 million a year ago. Net income was USD 159.9 million compared to USD 114.4 million a year ago.
For the six months, sales was USD 1,144.3 million compared to USD 854.3 million a year ago. Net income was USD 320.9 million compared to USD 173.2 million a year ago.
Fabrib – Thanks for the timely news. In case anyone is not in the know, Atlas has two perpetuals (D & H) both yielding over 8% right now, trading just under par and also a fixed ETD just over 7%.
On paper this appears to be one of the least junky plays I can find in that 8% range. I would take this all day long say over a PSEC debenture or some other small capped mREIT levered to the moon.
Good morning (afternoon in Italy) Theta, I own both ATCOL and ATCO. PD
FOOTNOTE. Atlas was taken private a year ago or so. The two perpetuals I outlined above are still listed and trading. Do your own DD with respect to the future of said potential listings. The baby bond, even though you are giving up 100 bps, would be the safer route to go in terms of not having to worry about expert market or worse in the future. Additionally you’d have peace of mind for a fixed duration holding as well as these mature late 2027.
Theta liked that comment on MREITS
I pulled up CIM on quantum online and after reading they did a 1 for 3 reverse stock split in May of this year and they have 3 or 4 preferred outstanding and now 2 baby bonds. The preferred are cumulative and callable but as an example A has been callable since 2021 so essentially perpetual and when issued in 2016 was 8% so indicates to me it was considered high risk even then that they had to offer that rate to sell it. Sorry anything CIM is a pass for me.
theta-
Was thinking the same regarding ATCOL. Next ex-dividend 10/15/24
Theta, Liked your comment about MREITS levered to the Moon. I pulled up CIM on Quantum, 4 preferred and now 2 baby bonds. Just this May CIM did a 1 for 3 reverse stock split and last Dec. reduced their dividend. I looked at CIM -A issued in 2016 as a 8% and Callable since 2021 In 2016 they had to be hard up to sell an 8% preferred with rates at the time. The other 3 are floating yet none have been called and as 2whiteroses said, nothing in the prospectus about using any of the funds towards calling any of the preferred. Just like the Government, borrowing more and not paying it off but unlike the Fed’s they can’t print money.
I don’t even have to read their last quarter’s report to say this is a hard pass for me.
PG&E playbook Pt.2
B. Riley Financial Releases Preliminary Second Quarter 2024 Financial Results
…Net loss for the quarter ended June 30, 2024 is expected to be in the range of $435 to $475 million, or $14 to $15 per diluted loss per share based on 30.4 million weighted average common shares outstanding…
https://seekingalpha.com/pr/19814827-b-riley-financial-releases-preliminary-second-quarter-2024-financial-results
stock down 25% after suspending the dividend
B. Riley Financial Inc. faces a widening US investigation into whether it gave investors an accurate picture of its financial health amid a string of losses and a sagging stock price.
The US Securities and Exchange Commission is assessing whether Los Angeles-based B. Riley adequately disclosed the risks embedded in some of its assets, people familiar with the matter said. The agency is also seeking information on the interactions between founder Bryant Riley and longtime business partner Brian Kahn, the former chief executive of Franchise Group Inc., the people said. Franchise Group, or FRG, is one of B. Riley’s larger investment holdings.