READER INITIATED ALERTS

Below readers can post in the comments section items they believe are important to seen right away by all other readers.

For instance if we are not at our computer and a reader spots a new issue being issued they can post it below where others can come for ‘breaking news’ from other readers.

We want to keep this page ‘fresh’ so we will slick it off every 50 days so the items below remain only newer items.

We only ask that comments beyond the breaking news be kept to other pages or this page will be ‘out of control’ and not fulfilling what I hope is a handy alert page.

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1,035 thoughts on “READER INITIATED ALERTS”

  1. Your insane trade of today was on GJP, the STRATS that holds Dominion Resources bonds. It is a monthly payer $25 face with a variable rate of the 3 month US Treasury plus 1.16%, which currently gives a coupon yield ~ 3.55%. Closed Wednesday (9/7) @ 24.05. 100 shares traded today @ 29.50 for a current yield ~ 3.0%. That is $5.45 above the last close which is absurd. 872 shares traded >28.00. It closed today @ 24.40.

    I have no earthly idea what the buyer was thinking, but some seller got a few steak dinners out of it. Once again, you should strongly consider keeping open sell orders way above the market prices. You never know when someone wants to buy you a steak dinner or two. . .

    We do not hold it in any account and were not involved in any trades today.

  2. I’m buying FTAIP, it fell in sympathy to FTAIN , which fell because of the HDO team recommendation to sell and move to IRA
    So technically, they should start buying in their IRA soon enough , either way, a reversion to mean should be eminent and is near 10% yield for a 1.76B market cap company

    1. Maybe, It just went x-div. a week ago. 3 months is a long time to wait to make a swing trade off the next dividend. A lot can happen between now and then. Just my Opinion.
      I prefer 30 to 45 days out.

  3. WELPM seller is back with another batch at 108.

    Baa1, no call/perpetual, 6% coupon, yield 5.56%, QDI

  4. MFZ asked for the list of issues that traded within 1% of their 2022 lows. There were 49 preferreds today.

    AAM-B, AFSIB, AHL-E, ARGO-A, BPYPM
    BPYPO, C-K, CMRE-E, CMS-C, CODI-B
    DLR-J, DUK-A, EBBGF, EPR-C, EPR-E
    FHN-B, FTAIN, FTAIP, GLU-B, HCDIP
    KIM-L, KREF-A, LANDO, MET-E, MET-F
    MITT-B, MITT-C, MTBCO, NMK-B, NS-C
    NYMTN, PACWP, PCG-D, PLDGP, PMT-C
    PW-A, RITM-A, RITM-C, RNR-F, RNR-G
    SACH-A, SLG-I, SQFTP, STAR-D, SWT
    TRTX-C, UEPEM, WFC-R, ZIONO

    And 36 babys/terms:

    AFGC, AIZN, ARGD, BC-C, CMSA
    DHCNI, DHCNL, DTG, ENBA, GEGGL
    HNNAZ, IIVIP, KMPB, KTBA, MGR
    MGRD, NEE-N, NEWTL, NEWTZ, OXSQZ
    PRH, PRS, RILYK, RILYN, RILYZ
    RMPL-, RWAYL, RZA, SAT, SCCG
    TBB, TBC, TPTA, TRINL, TVC
    TVE

    The only requirement was that the issue had to trade today 9/7, so anything that did NOT trade was not included in the list.

  5. Tenneco Announces Conditional Redemption for 5⅜% Senior Notes due 2024 and 5.0% Senior notes due 2026

    https://investors.tenneco.com/news-and-events/press-releases/2022/09-07-2022-213028623

    YAY! Don’t know if enough III’ers are following this to merit a Readers Initiated Alert, but I know I’ve mentioned this a few times, so here’s the hopefully final chapter… This of course also has positive implications for TEN stock..

    September 07, 2022

    SKOKIE, Ill., Sept. 7, 2022 /PRNewswire/ — Tenneco Inc. (NYSE: TEN) (“Tenneco”) today announced that it has given notice of its intention to redeem all of its outstanding 5⅜% Senior Notes due 2024 (the “2024 Notes”) and all of its outstanding 5.0% Senior Notes due 2026 (the “2026 Notes” and, together with the 2024 Notes, the “Notes”) on October 7, 2022 (such date, as it may be extended as described below, the “Redemption Date”), subject to the satisfaction of certain conditions.

    The aggregate principal amount outstanding of the 2024 Notes is $225,000,000. The redemption price for the 2024 Notes will be equal to 100.896% of the principal amount thereof, plus accrued and unpaid interest on such Notes from June 15, 2022 (the most recent interest payment date) to, but excluding, the Redemption Date, for a total payment to holders of $1,025.68 per $1,000 principal amount of 2024 Notes (assuming the Redemption Date occurs on October 7, 2022).

    The aggregate principal amount outstanding of the 2026 Notes is $500,000,000. The redemption price for the 2026 Notes will be equal to 101.667% of the principal amount thereof, plus accrued and unpaid interest on such Notes from July 15, 2022 (the most recent interest payment date) to, but excluding, the Redemption Date, for a total payment to holders of $1,028.06 per $1,000 principal amount of 2026 Notes (assuming the Redemption Date occurs on October 7, 2022).

    The obligation of Tenneco to redeem the Notes and pay the applicable redemption price to the holders of the Notes on the Redemption Date is conditioned on (i) the completion of the acquisition of Tenneco by Pegasus Holdings III, LLC (“Holdings”) pursuant to the terms of the Agreement and Plan of Merger, dated February 22, 2022, among Tenneco, Pegasus Merger Co. (“Merger Sub”) and Holdings (such condition, the “Merger Condition”) and (ii) the completion by Merger Sub of an offering of debt securities on or prior to the Redemption Date in an aggregate principal amount satisfactory to Merger Sub (such condition, the “Financing Condition”), and the Redemption Date may be delayed until each of the Merger Condition and Financing Condition has been satisfied or waived by Tenneco. If either the Merger Condition or the Financing Condition is not satisfied or waived, Tenneco may elect to rescind the notice of redemption and terminate the redemption and return any tendered Notes of such series to the holders thereof. If the Redemption Date is extended or the redemption is terminated, the Company will provide notice to holders of the Notes no later than 5:00 p.m. New York time on the business day immediately preceding the Redemption Date (or the new Redemption Date based on any extension)….

  6. For anyone that might own these.

    BIRMINGHAM, Ala., Sept. 7, 2022 /PRNewswire/ — Alabama Power Company (APRDM) today announced that it issued a notice of redemption for 5.00% Class A Preferred Stock, Cumulative, Par Value $1 Per Share (Stated Capital $25 Per Share) CUSIP No. 010392462 (NYSE: ALP PR Q) (the “5.00% Preferred Stock”).

    The redemption date for the 5.00% Preferred Stock will be October 14, 2022. The redemption price per share for the 5.00% Preferred Stock to be redeemed shall be equal to $25.00 per share plus accrued and unpaid dividends of $0.045 per share.

    Regular dividends on the 5.00% Preferred Stock being redeemed are payable October 1, 2022, to each holder of record on September 16, 2022. No dividends on the 5.00% Preferred Stock being redeemed will accrue on or after the redemption date, nor will any interest accrue on amounts held to pay the redemption price.

    Questions relating to, and requests for copies of the notice of, this redemption should be directed to EQ Shareowner Services at 800-468-9716.

    1. Doesnt surprise me, especially since the others went too. Anymore, any few subsidiary preferreds issued tend to be a “stop gap” to plug a temporary capital hole since holding company owns all the common stock. And regs typically require a certain debt/equity ratio.

  7. New Issue: AGNC Investment Corp. (AGNC)
    Series G Fixed-Rate Reset Cumulative Redeemable Preferred Stock
    $150mm
    Perpetual
    Price Guidance:: 7.75% (5yr resets)

    1. RE- AGNCN {maybe] “We intend to use the net proceeds from this offering to finance the acquisition of agency securities, non-agency securities (including credit risk transfer securities), other real estate-related assets and hedging instruments, other investments in, or related to the housing, mortgage or real estate markets, and for other general corporate purposes, which may include in whole or in part the redemption of our currently outstanding Series C Preferred Stock. Pending this utilization, we may temporarily invest the net proceeds in readily marketable, short-term, investment-grade, interest-bearing investments, including money market accounts, which are consistent with maintaining our qualification as a REIT. Such temporary investments would be expected to provide a lower net return than we hope to achieve from our targeted investments in agency securities, non-agency securities, and other mortgage- related assets.”

      AS of today, AGNCN would begin to float on 10/15 @ about 8.27%

      1. 2WR:

        13 Million shares of 7% AGNCN outstanding; a little surprising that the new issue will only be 6 million shares. Unless they want to use $175M of their precious cash, it may be only a partial call of AGNCN.

        So the $25M they spend quarterly on preferred dividend payments is likely going up. Not a good thing for AGNC, as they are already getting hit hard with the inversion on the 2YR and 10YR Treasury, forced sales to keep leverage ratios appropriate, and fewer consumers paying off their mortgages. AGNC’s prepayment rates are thus lower, which means they have lower proceeds to reinvest at higher rate MBS.

        AGNC has been a big-time favorite of the Seeking Alpha group that shall not be named, even as tangible book value has been crushed in 2022. AGNC down 17% YTD even after considering all their $.12 monthly dividends.

        NLY also has a preferred that is going “live” starting on 9/30/22 that will pay 3MO Libor +4.993% (6.95% NLY+F) – but this is a huge issue of 28 million shares.

        These residential mortgage REITs are getting squeezed hard from many sides with no end in sight to the pain.

        1. “These residential mortgage REITs are getting squeezed hard from many sides with no end in sight to the pain.”

          Funny you should call out residential mREITs. I think the pure Agency ones like AGNC have a lot less downside in a deep recession than commercial mREITs or non-agency residential.

          1. Landlord:

            The Agency mortgage REITs have never been through this type of environment, which includes $35B of Fed RMBS sales every month starting now.

            AGNC had to sell of 25% of its assets the last two quarters as they were forced to sell on the way down to maintain leverage ratios….and the big Fed QT is just starting to ramp up!

            Their tangible book value likely has only one way to go.

            This might be the worst environment ever to own the commons like AGNC and NLY. But the preferreds should be OK, as those two companies are good at what they do.

            If we enter a deep recession and the Fed stays aggressive, I would still much rather own a commercial mortgage REIT lending with 65% LTV ratios on assets like apartment properties.

            1. “If we enter a deep recession and the Fed stays aggressive, I would still much rather own a commercial mortgage REIT lending with 65% LTV ratios on assets like apartment properties.”

              65% is an aggressive LTV ratio. You should also understand the “value” in LTV is usually just calculated as a multiple of NOI and not a true market value. A deep recession is characterized by lots of job losses and an apartment building that drops below the upper 80s in occupancy/paying tenants can see NOI dwindle to zero after capex. It takes a long time to repossess and liquidate assets and in the meantime, the REIT can be in a cash crunch with their own interest payments.

              Conversely, the cash flow from Agency MBS is guaranteed and the principal will eventually be paid at par regardless of short term price volatility. The common stock bears all the risk from price volatility. The biggest concern for the preferreds would be a liquidity crisis but Agency MBS will be the first thing the Fed backstops in a crisis.

          1. Eugene,

            This afternoon, they announced the pricing of the new issue:

            https://finance.yahoo.com/news/agnc-investment-corp-announces-pricing-213000415.html

            “AGNC Investment Corp. (Nasdaq: AGNC) (“AGNC” or the “Company”) announced today that it has priced a public offering of 6,000,000 depositary shares with a liquidation preference of $25.00 per share (the “Depositary Shares”), for gross proceeds of $150 million before deducting underwriting discounts and other estimated offering expenses. Each Depositary Share represents a 1/1,000th interest in a share of the Company’s 7.75% Series G Fixed-Rate Reset Cumulative Redeemable Preferred Stock. In connection with the offering, the Company has granted the underwriters an option for 30 days to purchase up to an additional 900,000 Depositary Shares. The Company intends to apply to list the Depositary Shares on The Nasdaq Global Select Market under the symbol “AGNCL.” The offering is subject to customary closing conditions and is expected to close on or about September 14, 2022.

            AGNC intends to use the net proceeds from this offering to finance the acquisition of Agency securities, non-Agency securities (including credit risk transfer securities), other real estate-related assets and hedging instruments, other investments in, or related to the housing, mortgage or real estate markets, and for other general corporate purposes, which may include the redemption in whole or in part of AGNC’s currently outstanding 7.000% Series C Fixed-to-Floating Rate Cumulative Redeemable Preferred Stock.”

            1. Eugene,

              Since Rob posted before this afternoon’s announcement, he obviously didn’t get the number from that. He may have gotten it from Early Bird’s post this morning at 8:08 AM, in which the talk was for $150 million of the new issue.
              $150 million / $25 par = 6 million shares.

  8. I show 44 preferreds that are within 1% of their 2022 low which is not too surprising. There are 43 babys/terms which IS a little surprising. If you think this is close to a bottom, plenty of issues on sale . . .

    1. I am personally buying as I sold in beginning of Aug with $2+ cap gains in several preferreds. Started buying on Friday and today, and will continue to buy and begin rotating some investments if these prices continue down. Who knows if this is a bottom or not, but the recent selloff has created value for me personally. Some of these are: CTDD, AAM-B, AHL-D, AEL-B, COF-N/K, CMS-C, UZD, DTB, AEFC, MGRD.

      1. Mr. C, I am trying to have some money impounded in “time out” a month or two to see if we get any end of year tax loss selling. But I have been following on CMS-C though. I have been buying last couple days chasing downward with current purchase price overall ave at $17.30 now. I will chase downward on this one some more. Besides keeping some cash, a secondary problem I have is I dont have the financial firepower you have to look to toe in on more as I would have to sell what I want to keep in order to do that.

        1. I will be rotating out of some things that havent moved much. I dont want to sell them, but the current IG selloff has presented a better opportunity for longer term. Ideally I wanted to keep the stuff I acquired from the May selloff as well. It seems that the way things are playing out… I might not keep as much long term anymore. It seems a few times a year we have some decent movement. Fixed income investing is starting to seem more fickle. Seems for the near term, it has become easier for me to sell when everyone is buying, and buy when everyone is selling. I still do have the CWMF SA service, and has been useful for example when to buy is when the crowd is yelling for the selling to stop. That does tie into CWMF’s trades. Some were in June and Aug that they have posted.

    2. Hi Tex, would you mind sharing the list? I think your lists are making some of us lazy. Appreciate it.

    1. when they slash the dividend by 80% on the common to almost 0 out of the blue because they are broke, and that is what happens…

    2. Jos- “Presidio Property Trust Shares Sink 30% On Switch to Variable Dividend Policy.” Posted by TD news via Dow Jones.
      The common dropped by 34%; not a good sign.

    1. Interest rates are going up and QT is active so all preferreds that are not short duration, about to be called or floating will adjust. These stocks will likely revisit their lows of $23.1 and $23.46 respectively.

      1. these are investment grade preferreds that are callable in six months.they should be much closer to par.

          1. As Tim noted, S&P rates the preferred stock BBB.
            Moody’s does not rate the preferred stock directly, but rates Apollo Asset Management A2 as an issuer of debt, which implies a preferred stock rating of probably Baa1.
            I have had some AAM-A since January.
            I don’t see these recent price fluctuations as anything but random. For example, if you use 2 weeks ago, 8/19, as a starting point, AAM-A is down about 4.5% after adjusting for the ex-dividend 8/31. This pretty much tracks the S&P investment grade preferred stock index for those two weeks. Not huge volume either.
            I like the yield on these, especially with QDI. Might look to take a tax loss on the AAM-A and move into the AAM-B.

            1. NHcoast: why move from A to B? same coupon, first call so close together prob makes no difference. current yield about the same. just curious why you’d take the loss. (I own A)

              1. Franklin – You may have answered your own question in identifying these as “same coupon, first call so close together prob makes no difference. current yield about the same.” What that sets up is an ability to harvest the value of the tax loss you have without losing your position in the name yet making just enough change to satisfy Uncle Sam. Believe it or not, I bet there are people out there who actually have some trades made at profits this year… If they do, then there’s value in them thar tax loss hills, value worth harvesting… I bet nhc is one of the lucky ones..

                  1. 2WR
                    I might take that bet. Yes, I do have some STCG to offset. Another income investment I employ is to buy good dividend common stocks and sell in-the-money call options against them. If the stock goes down (as some have done this year), there is a realized gain when the options expire or are bought back at a lower price. Unless the underlying stock is sold, the loss is unrecognized. That is the source of my STCG this year. Otherwise, I would say that my overall investment experience this year has been, in the parlance of corporate public relations, “challenging.”

                  2. Yes, me too…. Point is that because these two issues are almost identical, you can harvest the tax loss without losing your position or having to wait 31 days to buy back.. Ha,,, I sound like I’m making myself out to be a tax expert..not even close…. I hardly ever do any of this but I understand the concept as I’m sure you do too……

                    1. Probably better in theory than in practice. A few weeks back, I bought some SCE-J (which I still like at ~$20), forgetting completely that I had sold SCE-J at a loss exactly 30 days before. The price went down the next day. So if I had waited 1 day, I would have avoided the wash sale rule and also purchased at a lower price.

        1. AAM-A has been callable for the last 6 months. Apollo may leave this outstanding; at 6.375% it may not be worth refinancing.

        2. Actually AAM-A is already callable. B will be in 6 months. But just because they are callable does not mean they will be pinned to par. It’s an optional call, not a redemption date and the fact that they have not called the A already tells you they likely won’t call the B either when it becomes callable given the rate

  9. Great Elm Group’s most recent offering, GEGGL is a 7.25% coupon note maturing 6/27, has fallen like a rock. It was down -5.25% today to close @ 21.23. It traded as low as 20.40, so it could have been worse. They have three other notes with lower coupons and shorter maturities that are all trading ~ 25ish and ~ flat for the year. Don’t really know why GEGGL has been so weak. Maybe people think Great Elem will be money good through 6/26 when the 5.875% GEGG0 matures, then somehow default within the next year. Does not seem like a reasonable explanation but I have no other guesses.

    We don’t own it in any account.

    1. Tex – GECC is pretty much at the bottom rung in BDC Land and has been trying unsuccessfully to pull themselves out for many years with much of their problem stemming from an oversized commitment to Avanti Communications by a previous management group. They did a 6 for 1 reverse stock split in January and a rights offering in June…. Here’s the conclusion of a write-up from the BDCReporter written at the time of the offering in June:

      Unfortunately

      We know very little about the 3 specialty finance companies in which GECC has invested both equity and debt capital except that their FMV is about $60mn.

      Investors are not privy to the finance companies balance sheets, income statements or total distributions received.

      As a result, it’s difficult to determine how successful the three companies purchased have been or what we should expect going forward.

      Nor do we know in what form and in which entities the new capital will be invested and what is the expected return.

      Long Shot

      However, the numbers do suggest that GECC will not be able to maintain its current $0.45 quarterly distribution much longer and a very substantial reduction might be coming.

      Moreover, it’s always possible that – as in the past – GECC will choose to make distributions in the form of more stock to protect its cash haul.

      Not Over Yet

      Finally, with a history of NAV erosion and given the current weakness in the markets for most assets, GECC’s asset coverage /debt to equity metrics could once again be strained, the Rights Offering notwithstanding.

      If so, under BDC rules, GECC will not be permitted to make any distributions or borrow any more until the minimum asset coverage is achieved.

      Our own simplistic calculation indicates that a ($22mn) decrease in portfolio asset value would be sufficient to cause GECC to be in violation of the asset coverage rule, or very close. That represents a drop in portfolio value of less than 10%.

      Remain Worried

      Being able to raise new equity capital – even if at a discount to net book value per share – is quite an accomplishment in this market.

      On the other hand, we are concerned that with difficult market conditions and a still early foray into specialty finance, most or all all that new capital might yet go down the proverbial drain, leaving GECC’s shareholders and bond holders disappointed.

      Just a relatively small decrease in portfolio value could yet cause GECC’s metrics to hit BDC regulatory limits.

      Since the IVQ 2017, the BDC’s NAV Per Share has decreased (80%) because of asset value losses.

      The new CEO will have to work hard – and quickly – to turn around GECC.

      1. Right you are, Fab…. Thanks…. See what happens when you comment on a company you only follow from afar??? You can make mistakes by jumping to conclusions like I did…… Related companies and, therefore, not the same credit, but still all a part of the same struggle to right the same ship from what I gather… glad you clarified…..

      2. Thanks Fabrib, I should have checked to see that not all Great Elm’s are in the same capital stack.

        GECCO,GECCN, GECCM are Great Elm Capital

        GEGGL is from Great Elm Group

        So comparing GEGGL to the other three is NOT valid and obviously the market is thinking it is a much weaker credit. Longer maturity date is probably not a major factor for its lower pricing.

      3. Fabrib, just to clarify you mean GEG is the symbol for Great Elm Group; there is not a GEGG. Both GEG and GECC are extremely risky, though GECC is profitable 🤐

  10. BRG-C CALL NOTICE

    Although I can’t find any official announcement anywhere I received from Fidelity this NOTICE OF CALL on BRG-C for OCTOBER 6 – They’ve got a misprint on coupon I believe but Cusip is right… NOTE: I do not own BRG-D so don’t know if that’s been announced too but it should be if this is… Date coincides with former announcement for finally closing this deal

    “Fidelity would like to inform you of an event that will occur on one of the securities which you hold in your portfolio.
    The below security was affected by a Full Call.

    CUSIP: 09627J748
    Description: BLUEROCK RESIDENTIALGWT REIT PFD SER C 7.65000%
    Rate: 0.000%
    Maturity Date:
    Quantity: XXXX
    Redemption Price: 25.00
    Redemption Principal: $XXXXX
    Call Date: 2022-10-06

    To discuss your investment or other fixed income opportunities, please visit Fidelity.com, visit your local Investor Center or call 800-544-5372.

    1. 2WR – sometimes Fidelity gets the call notice before any public announcement and you get alerted by them. I have had that occur a few times on different issues

      1. Me too… I’ve also had Fidelity deliver Call Notices when issuer has not done the right thing but did do the legal thing by only notifying the holder of record and never making a news release or EDGAR filing.

        Is there still the possibility that the accrued includes an extra 5 days above the full coupon amount of $0.47656?

    2. Does anyone know if CBKPP is called? and when?
      I remember that I have seen a post in that regard but can’t find it through the search function.

          1. Tim – I wish I could be more specific or provide a link to the call notice but I cannot reconfirm what I have in my notes that is dated Aug 19…. If I remember correctly, it was info that somebody else posted on here on or about that day….

    3. An amendment to the Spinco reg statement was also filed yesterday, so they seem to have all the ducks lined up for October 6. I think we should receive a 5 day stub payment on the preferreds.

      Contrary to what IR implied to you a couple months ago, it does appear they needed to give at least 30 days notice on the preferreds before closing the deal. In this case it’s more like 37 days, so perhaps the preferreds are not the longest pole in the tent and something else is driving the close date.

      If the notice provision on the preferreds was the only thing remaining, I’m still wondering if there was a way they could have gotten around the 30 days

      1. Yup, I agree 730… In a way it restore my faith in being able to interpret Legalese as written in prospectuses…. ha

      1. Does Raymond James provide any more details than Fidelity???? Do they give an amount of accrued to be paid?

  11. RE: NEWTZ and NEWTL – https://investor.newtekbusinessservices.com/news-releases/news-release-details/newtek-business-services-corps-ceo-barry-sloane-comments-2

    So much for the theory regarding the possibility of NEWTZ to be called at a premium due to the effort of NEWT to become a BHC instead of a BDC. They now say they will remain a BDC throughout 2022. NEWTZ becomes callable at $25 on 2/1/23 so it now looks as though both will end up being called at par once NEWT converts to a BHC.

    “Mr. Sloane concluded, “As we have previously announced, we are awaiting decisions from the regulators on our applications to acquire the National Bank of New York City, and anticipate receipt of regulatory approvals in the third or fourth quarter of 2022. Important to note, that even with this anticipated timetable we remain confident in our annual dividend forecast as we plan for wrapping up our affairs as a BDC, and currently expect to maintain ours status as a BDC through the end of the fourth quarter of 2022.””

      1. It is callable now on a make whole call provision only that uses 2/1/23 as the base year….. so yes it is callable since 2/1/22, but not at par… 2/1/23 – first par call.

  12. Anyone know if Rida/HDO did a pump piece on CHMI.A? It was up over 3% today on unusually high volume.

  13. Saw in Fidelity news feed:

    Tellurian Plans Senior Secured Notes Offering
    BY MT Newswires
    — 8:51 AM ET 08/29/2022

    08:51 AM EDT, 08/29/2022 (MT Newswires) — Tellurian (TELL) on Monday said that it is planning to offer 11.25% senior secured notes with $1,000 principal amount each, due 2027, and warrants to purchase its shares.

    Tellurian said the offering’s proceeds would be used for additional funding of its subsidiary Driftwood’s liquefied natural gas project.

      1. And yet, they are now saying that the $4B funding is close to being a deal –with a couple other companies backing it.

          1. The new offering are secured notes of their Driftwood LNG project (the terminal they’re constructing). Their prior secured offering was backed by their Driftwood upstream assets (nat gas acreage). Their sr. unsecureds (TELZ) are backed by the parent company.

            Does anyone understand where this new offering ranks in comparison to TELZ? From the prospectus, it seems like they rank equally:

            The notes will be general senior obligations of the Company secured by first-priority Liens on the
            Collateral and will rank:

            equal in right of payment to all existing and future Indebtedness of the Company that is not
            Subordinated Indebtedness;

            structurally junior to all existing and future Indebtedness and other liabilities and commitments of
            any existing and future Subsidiaries that do not guarantee the notes;

            senior in right of payment to any future subordinated Indebtedness of the Company; and

            effectively junior to our existing and future Indebtedness secured by Liens on assets that do not
            constitute a part of the Collateral, to the extent of the value of such assets.

            If the proceeds of any sale of the Collateral are not sufficient to repay all amounts due on the notes and
            any other obligations secured by the Pledge Agreement, the holders of the notes (to the extent not repaid
            from the proceeds of the sale of the Collateral) would have only an unsecured claim against the remaining
            assets of the Company.

  14. Tim, I thought there used to be an “errors and/or omissions” page, but I do not see it. In any event, a few issues to look at if you have time:

    FITBI is listed as fixed coupon, I think it is fixed to float

    BPOPM is listed as a Trust Preferred, should it be a fixed coupon?

    There are 18- $25 non-convert issues that are not listed on the master list:

    BEPI
    BIPI
    BPYPM
    CFR-B
    COF-N
    FRC-K
    FRC-N
    FRMEP
    HCDIP
    KEY-L
    MDV-A
    MSBSL
    MS-P
    MTBCO
    NILE-D
    ONBPO
    PRH
    SCCG

    1. Thanks for posting, 730. Gee this even gives them time to issue a 30 day notice on the preferreds if need be and put to rest whether or not they still need one…. Here’s hoping this announcement today is more significant regarding an expected closing date than they’ve been in the past….. It’s been a long but always accruing 4 mnths since this deal received shareholder approval.. Good to hear something theoretically tangible regarding timing.. know I had contacted them just this week suggesting shareholders deserve a more definitive update after all this time, so I’m sure it was I who caused this presser… . yeah, right, that’s the ticket….ha

  15. FYI: If you are looking to park cash but need it liquid, Dominion Energy Relaibilty recently increased their rate to 2.5% (for over 50k). Not as good as a 3 month Treasury but access to your money.

  16. ARGO-A that appears pretty high on the great ‘$25 Pref sorted by loss/gain’ list as being sold off hard of late.

    It is listed as ‘IG’ and rated BB. I think BB is the correct rating and not IG. This is also confirmed at QOL.

    Having said that, nibbled on some as it make Al time lows. Especially with juicy 8.1% dividend few days away.

    Anyone knows why this one is being sold off of late?

    1. I’ve been nibbling too- nice floater with nice change of control / early redemption penalties.
      The report on 8/9 showed a big drop in earnings- then on the 10th, R James downgraded to ‘market perform’
      On the upside- it looks less like for them to do a merger or sale- so less likely for ARGO-A & ARGD to end up in the expert mkt– fingers crossed.

          1. That might be the cause if he said sell– I think I recall an article on it a week or two ago from him.

  17. CUBI-F dropped suddenly to $25 in the afternoon on heavy volume and stayed there. Any news about call?

    1. When you think about it, there’s no way for there to be news of a call on CUBI-F or E right now because they’re callable on dividend payment dates only on 30 to 60 days notice. Even following a “regulatory capital treatment event,” the timing of a call wouldn’t allow them to be announcing anything right now. They’re past the ability to call on 9/15 and it’s too early for them to be able to announce a call for 12/15. So unless someone doesn’t believe CUBI is going to be an ongoing bank it’s tough not to see how this drop is anything but a motivated seller with some non-CUBI related reason to sell, and, therefore an opportunity…. They have to exist until 12/15 at least and they have to pay the DEC dividend at a rate that were it set today would be for approx 7.76% for the quarter. So even if there were eminent news pending about a call, CUBI-F ought to easily be worth more than $25 today. I’d say this is confirmed by the fact that CUBI-E didn’t move at all on the day.

      1. 2WR, Makes sense; logical argument. In fact it has bid/ask of 25.15/25.25 as I write. Thank you.

      2. Nice analysis 2WR. Also add in the fact that CUBI-F goes Ex-div on 8/30 and thus has accrued most of the .4211 dividend that will be paid on 9/15

  18. LAND –
    Gladstone Land reduces series C preferred stock offering to $255M
    Aug. 24, 2022 4:36 PM ETGladstone Land Corporation (LAND)By: Jessica Kuruthukulangara, SA News Editor4 Comments

    Gladstone Land (NASDAQ:LAND) said Wednesday it amended its $500M continuous offering of its 6% series C cumulative preferred stock.
    The primary offering was reduced from 20M shares (~$500M) to 10.2M shares (~$255M).
    The amendment also limits the number of shares to be sold under the dividend reinvestment plan to no more than 200K.
    The offering of the preferred stock will now terminate on by Dec. 31 or the date when all 10.2M series C preferred shares in the primary offering are sold.
    LAND so far sold ~$213M of its series C preferred stock since Apr. 3, 2020.
    “… rising cost of capital, cap rate compression in certain markets, and uncertainty surrounding the economy led to a slowdown in our acquisition activity this year. Thus, we believe it is prudent to slow down fundraising efforts with regard to the series C preferred stock and reduce our overall cost of capital,” said LAND CEO David Gladstone.
    LAND intends to apply to list the series C preferred stock on Nasdaq or another exchange within 1 year of the termination date of the offering.

    https://seekingalpha.com/news/3876383-gladstone-land-reduces-series-c-preferred-stock-offering-to-255m?mailingid=28836425&messageid=2900&serial=28836425.376&source=email_2900&utm_campaign=rta-stock-news&utm_content=link-3&utm_medium=email&utm_source=seeking_alpha&utm_term=28836425.376

    Comments from David Gladstone, President and CEO of Gladstone Land: “We began selling our Series C Preferred Stock in April 2020, after we completed our $150 million Series B Preferred Stock offering. Since launching the Series B Preferred Stock offering in May 2018, we’ve used the Series B and Series C proceeds to help grow our farmland holdings from 75 farms with approximately 63,000 acres worth about $543 million in mid-2018 to 169 farms with over 115,000 acres and 45,000 acre-feet of banked water worth a total of over $1.5 billion today. Having access to the independent broker-dealer and RIA markets has been invaluable for our growth and continues to enhance our breadth of capital sources.”

    Mr. Gladstone added, “our current farmland portfolio continues to perform well, and our existing debt remains very affordable for us, as over 99% of our current borrowings are fixed at a weighted-average cost of just 3.26% for the next five-plus years. However, the cost of new financing, including our undrawn lines of credit, is becoming more expensive, and we are seeing cap rates compress in many of our regions of focus. While overall farmland values continue to increase, rental rates in certain areas are not increasing quite as fast, and we believe it may take some time for rents to adjust to current land prices. We try to adhere to a disciplined underwriting approach so that we’re only acquiring new farms that we believe will be accretive to both us and our shareholders. However, the rising cost of capital, cap rate compression in certain markets, and uncertainty surrounding the overall economy has led to a slowdown in our acquisition activity so far this year. Thus, we believe it is prudent to slow down our fundraising efforts with regard to the Series C Preferred Stock and reduce our overall cost of capital, which we believe will allow us to make more competitive bids on new acquisitions.”

    The Company intends to continue to use the net proceeds from the Series C Preferred Stock offering to repay existing indebtedness, fund future acquisitions, and for other general corporate purposes. There is currently no public market for shares of Series C Preferred Stock. The Company intends to apply to list the Series C Preferred Stock on Nasdaq or another national securities exchange within one calendar year of the termination date of the offering; however, there can be no assurance that a listing will be achieved in such timeframe, or at all.

    1. 2wr, thanks for posting this news. Sounds like a prudent move on their part. I respect that they’re watching the cost of dividends and not just letting the issue run

    2. 2whiteroses, at the end it says they intend to move it to another national securities exchange…I hope they aren’t talking about the “expert” market! Any thoughts?

      1. Kitti – The emphasis is not on moving it – this one has yet to be listed anywhere. What is listed already is the almost identical issue, Series B, LANDO. I suspect the language is essentially boilerplate just so they can keep their options open, but I suspect the plan will be to list Series C whereever LANDO is listed at the time…. nothing to worry about here………. no “expert” market in the wind for these……..

    3. 2WR:

      Coincidentally or not, this announcement by LAND seemed to give their 6% LANDO preferred a much needed reality check, as that preferred has taken a swan dive in the last week.

      I sold all my LANDO at $26.50 earlier this summer, only to watch it trade up to nearly $28 in early August! This morning LANDO traded down to $25.03 and hit an 18-month low.

      On a different note, if anyone is looking to be a big-time contrarian seeking value, take a look at the office REIT common shares. They have been absolutely bludgeoned.

      A few are trading at or even well below their 2020 COVID lows including VNO, DEI, HPP, KRC, etc. VNO is yielding almost 8%! The entire sector has been a bloodbath. Short sellers have truly coined money in this area over the last year.

      The only common I own in the REIT office space is ARE, but they focus on biotech/lab space and are more immune to the work-from-home “secular” trend. I do own positions in preferreds issued by VNO, CIO, and HPP, but have kept the exposure small.

  19. Preferreds bounced back to close off of the day’s lows. I show 31 preferreds (>$8.0) that are down more than -5.0% in the last two days. Here is the list sorted by largest two day loss:

    FBIOP -10.6%
    DS-B -9.5%
    BHFAN -8.3%
    BAMI -8%
    AESC -8%
    BHFAM -7.4%
    BML-J -7.4%
    SWT -7.3%
    GS-A -7.2%
    AVGOP -7%
    AHL-D -6.6%
    FATBP -6.4%
    BML-L -6.4%
    PRE-J -6.1%
    PSA-L -5.7%
    BIPI -5.7%
    AEL-A -5.7%
    PSA-I -5.6%
    MET-A -5.5%
    ALL-I -5.5%
    TFC-I -5.5%
    PSA-J -5.4%
    PSA-M -5.4%
    TCBIO -5.4%
    COF-K -5.2%
    PSA-S -5.2%
    AHL-E -5.1%
    VNO-O -5.1%
    INN-F -5.1%
    AGM-G -5.1%
    VNO-M -5.1%

    There are 14 babys/terms that are down more than -5.0% in the last two days:

    IMBIL -20.1%
    PBI-B -9.3%
    DHCNI -9.1%
    BAMH -8.1%
    DTB -7.9%
    GEGGL -7.8%
    QRTEP -7.6%
    AFGC -7.5%
    APTV-A -6.7%
    AEFC -5.7%
    CGABL -5.4%
    CUBB -5.2%
    SOJE -5.1%
    CTBB -5%

        1. I have actually been laddering a few secondary market CD’s from Fidelity. I have been successful at acquiring low coupon CD’s maturing in 12-16 months with a YTM of over 3%. Thus, the vast majority of the yield or income (maybe 80% or more) is derived from long term cap gains and therefore taxed at a lower rate.

    1. Huh- started trading as KEYHL last Thurs. Is on at Schwab – not showing as L on TDA- still V.

      1. annoying thing at schwab –
        -they will sell the V,
        -a couple of days later, they rename your V holdings to a numeric ticker symbol and refund all the purchase price into your account.
        -a couple of days after that, they will change the ticker to the L and re-charge the purchase price.
        Note that there are no notices or anything about all these transactions – they just happen.

        So, for the few days all this is happening, you have the cash back in your account, but they will pull it when they rename the second time.

        It isn’t a huge problem, but if you aren’t paying attention, you will think you have more spendable funds than you really do.

        1. Not schwab but at another broker I made $10,000 in one day. Then I lost $10,000 the next day. All because I bought 400 shares of a preferred IPO. Computers are as dumb as their programmers,

        2. @private

          The exact same thing happened at Fido with the latest Oxford Lane issue. I almost overspent my account. Not sure what would have happened but you have to keep on top of these symbol/letter switches.

          1. With all the financial gymnastics, Schwab actually let me set up orders in an IRA that would have overspent my account if they had filled.

            Schwab usually very vigilant to not let me set up orders for a penny more than is available (which is helpful), but they apparently don’t count the money they know they are going to take back when the symbol changes.

            I didn’t notice until they pulled the money back and I looked at my open GTC orders, but they totaled more than my available funds (not by a lot, but still…)

    1. Tex, I looked at this a while back. A cursory read indicated a pretty decent mutual fund with a yield of less than 7%. What I could not figure out was why anyone would buy the fund when they could buy this preferred yielding over 9%.

      Maybe some SA writer has “discovered” ICR-A?

      1. @T2 RB
        ICRPRA
        I own this and all I could tell is that there is a proxy of some sort on SEC EDGAR. I would look more, but I gotta get a tooth pulled in an hour.

      1. I’d hate to believe they have that much influence but who knows….

        Series A Preferred Repurchase Program

        The following subsection is added on page 139 under “Description of Capital Stock – Preferred Stock – Redemption” to reflect the authorization and approval by our board of directors of a share repurchase program pursuant to which the Company may repurchase shares of its Series A Preferred Stock.

        On August 11, 2022, the Board authorized and approved a share repurchase program (the “Series A Preferred Repurchase Program”) pursuant to which the Company may repurchase up to the lesser of 1,000,000 shares or $15 million of the outstanding shares of the Company’s Series A Preferred Stock through December 31, 2022. Under the Series A Preferred Repurchase Program, repurchases of shares of the Company’s Series A Preferred Stock may be made at management’s discretion from time to time through open market purchases, privately-negotiated transactions, block purchases or otherwise in accordance with applicable federal securities laws. The Company may from time to time enter into Rule 10b5-1 trading plans to facilitate the repurchase of shares of its Series A Preferred Stock pursuant to its Series A Preferred Repurchase Program.

        The Company cannot predict when or if it will repurchase any shares of Series A Preferred Stock, and there is no guarantee as to the exact number of shares that will be repurchased under the Series A Preferred Repurchase Program. Such repurchases will depend on a number of factors, including constraints specified in any Rule 10b5-1 trading plans, price, general business and market conditions, and alternative investment opportunities. The Series A Preferred Repurchase Program may be suspended, extended or terminated by the Company at any time without prior notice.

        1. 2WR, I would estimate today’s ICR-A movement is about 99.999% due to HDO’s recommendation. The repurchase notice ICR posted @ SEC was on Friday 8/12, so if that was going to move the market it had all last week to do so. JB/AZ says the HDO rec came out yesterday and volume “explodes” in the pre-market trading. I say explodes in the context that daily volume the last three months was as low as 104 shares a day. Many days were sub 1,000 shares. So you compel 13,203 shares to trade in the pre-market and voila! I think we ARE in Kansas and Dorothy just found out who was behind the curtain.

      1. Tim, The new offering looks like a decent interest payment. Any idea of the temp symbol?

        1. Charles – the press release says “[Cobank] has issued $400 million of preferred stock in a transaction exempt from registration under the Securities Act of 1933, as amended.” Given it will not be registered, I’d guess it will theoretically not see the light of day for trading to the public… Having said that, CBKPP, as 144a issue, also was never intended to be offered publicly.

  20. Received payment for called BKEPP at TDAmeritrade. $8.75 per share. No payment yet at Merrill Lynch.

      1. Rvrert: I believe the terms of the deal there were a straight $8.75 without any interest, dividend, or any other supplement – that’s already a premium over its face, so in that sense it’s already included any possible foregone supplement. It did pay its standard distribution of a little more than 17 cents a share on 8/12, so it would have only been about a penny per unit of accrued distribution at any rate.

    1. Thank you to everyone that mentioned BKEPP as a possible redemption. I wish that I had bought more.

  21. DCP being bought by PSX (A3 BBB+)
    PSX owns already 43% and its not binding but if it goes through it will become a 100% owned subsidiary of PSX with potentially nice bump in ratings. Both issues of PFDs are fixed to floating with high spreads. Bought some DCP-B today at less than par plus accrued.

    1. Wonder if 87% ownership by PSX qualifies as being able to trigger ‘Change in ownership’ clause and trigger and early call at $25 (and not the $25.50 for other reasons)

      1. M, It appears its a nyet.
        Change of Control” means the occurrence of either of the following after the original issue date of the Series C Preferred Units:


        the direct or indirect lease, sale, transfer, conveyance or other disposition (other than by way of merger, consolidation or business combination), in one or a series of related transactions, of all or substantially all of the properties or assets of us and our subsidiaries taken as a whole to any “person” (as that term is used in Section 13(d)(3) of the Exchange Act); or


        the consummation of any transaction (including, without limitation, any merger, consolidation or business combination), the result of which is that any person (as defined above), other than us, our general partner, DCP Midstream, LLC, and Phillips 66 and Enbridge Inc. and their respective subsidiaries, becomes the beneficial owner, directly or indirectly, of more than 50% of the voting interests of us, our general partner, or DCP Midstream, LLC, measured by voting power rather than percentage of interests.

            1. Thanks, mbg…. being one of those K-1 haters, this will not be one for me… Yes, I hear great stories about how they’re a breeze in Turbotax but that was not my experience in the past….. I never thought I’d ever quote Great White, but once bitten, twice shy.

              1. 2WR – K-1s can be a pain in the neck in a taxable account if the issuer is an active business (even with turbotax). Better than it used to be, but still….
                I have a couple of K-1 payers in my taxable account and every year I hate dealing with them.

                In an IRA, K-1s are no problem if the issue isn’t throwing off UBTI.

                The k-1s for the DCP preferreds in a taxable account are very simple because the preferreds don’t participate in the business. there is just a single line for “guaranteed payments”. Yes, you still have to get it into turbotax, but the simplest K-1 I deal with.

                Not trying to talk you into anything, but I bought a few more shares yesterday…

                1. Private, I had 3 preferred K-1s in taxable, CEQP-, BKEPP, and one I cant remember and it was a breeze also.

                2. I’ve had DCP-B for about four years in a retirement account, never UBTI so don’t bother with K-1. Just hope it doesn’t go to the expert market.

                3. Thank you @Private – Good to know that DCP Preferreds in taxable account are simple to enter using turbotax.

                  But are these “guaranteed payments” that it pays out get taxed at regular income rates or in any preferential way like QDI ?

                  I had bought some in my IRA but sold them quick before it goes ex-divdend as I did not want to deal with potential UBTI issues. Is there any way to ascertain it will not have any UBTI with change in their ownership and way it is run?

              2. 2WR, Geez … there’s a blast from the past.

                Based on posts here, this morning, I bought some DCP-B. Looks like a good deal, given the possible upgrade by Moody’s and decent YTW (even at 25.00, not 25.50) if redeemed.

        1. The offer seems to be $34.75, but DCP common shares are trading over $38 today. I am sure I am missing something here.

    2. Nice move. Thanks for posting about it, I added a few to replace my BKEPP.

      Worthwhile bet that the deal closes. With Phillips the buyer, the change of control provision does not apply.

      If deal closes. highly likely these get called in June 2023 as Phillips won’t let them float at that high rate but a nice juicy 7.875% fixed yield til then.

      And trading at under par when you factor in September’s accrued dividend

      1. Yes, Mav, Rvert hit the spot for me. I was getting light in the call type anchored and being a floater with high adjustment is good in case it doesnt by chance get redeemed. Basically on take under it would be BBB- minimum rated. Also jumped on RZA train too as it went to 25.28 this morning so I bought some, also.

    3. Rvert – Thanks for the info, I’ve held DCP-B in my IRA for a while and just picked up another 100.

    1. My shares at schwab no longer show a ticker – just a number. I have seen this before on corporate transactions – so I think it will payout today or tomorrow.

  22. New Issue: KeyCorp (“KEY”)
    Expected Ratings:* (Moody’s/S&P/Fitch) Baa3/BB+/BB+ (Stable/Stable/Stable)
    Issuer Ratings:* (Moody’s/S&P/Fitch) Baa1/BBB+/A- (Stable/Stable/Stable)
    $200mm
    6.375-6.50%

    1. Wow so key and PNC same day? I suppose they are thinking rates are going up get em while you can.

      I often joke that an 80 widow trading ATT has more patience/ intestinal fortitude then some of these desks

    1. Thanks j – will add you to mu post–for some reason these got caught in the spam filter.

      1. no need to add me anywhere , Tim.
        Please delete my posts since EarlyBird posted the info already.

    1. New Issue: Sachem Capital Corp (SACH)
      Security: Fixed Rate Senior Notes due 2027
      $25 Million
      BBB+ (Egan-Jones)
      7.750 – 8.000% area

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