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Sachem Pulls Bond Offering

Most you already know that Sachem Capital (SACH) ‘pulled’ their previously announced bond offering. The reasoning is that ‘market conditions’ make a current offering too expensive. Sachem appears to be able to operate without the new money at this time–but as time goes by, later in the year, funds will get tighter as they have another baby bond mature in December. The press release is here. Now we know the meaning of the press release on the call of the SCCB issue for this month–some on the website had the meaning pretty well pegged.

Equity markets are getting a bit fired up this morning with the S&P500 and NASDAQ already trading up 1/3%. The 10 year treasury is trading right at 4.30%–this as we await the personal consumption expenditures (PCE) and related inflation indicators. This will set the tone for interest rates for the next week–next Friday 7/5 we will have the June employment report, which is the next ‘big’ number.

Yesterday I bought some of the Aspen Insurance (now owned by Apollo Global) 5.625% perpetual preferred (AHL-E). at $19.65 and a current yield of 7.17%. This issue is a notch below investment grade and the 7.17% yield. I am thinking a return of 10% on this before the year is out–so looking for the share price to move to the $21 area and then we will see where interest rates go. This will be my singular purchase for the week–whatever cash I have in accounts will go elsewhere today–i.e. bonds or CDs. July is a large CD maturity month starting next week so cash on hand for buying elsewhere will not be a problem.

Well let’s get the day going–a day with possible 10-15 basis point moves in interest rates when the PCE is released. Buckle up for the ride.

8 thoughts on “Sachem Pulls Bond Offering”

  1. Tim-
    Any concerns about Apollo messing with the AHL stocks?
    Just wondering if it seems ‘safe’.

    1. Last Chance Saloon is closed. Evidently they got there too late…
      Looks like they will have to sell their $38M in mutual funds, etfs and bonds which should be pretty liquid Level 1/2 assets. They should stop the contributions to the “partnerships” as well IMO.

      Will they NT the Q2 10Q – remains to be seen.

      1. What solidly based company anticipating to refund its maturing debt would wait 2 weeks before its maturity date to do it? Not rhetorical…. The answer is none…. I’m surprised a firm such as Oppenheimer would agree to put thei name on this… This is more like Riley or Ladenburg territory……

        1. You just summarized my feelings on this. If I owned anything from this company I would be selling it and moving on. It all sounds way too incompetent and embarrassing.

          1. fc:

            Not surprising, SACH common and the babies were another favorite of the HDO band of clowns. I tend to stay away from anything they recommend.

            That motley crew wrote a “Grossly Undervalued and Set To Soar” bullish report in September 2021 when SACH was at $5.40 that more or less nailed the top in the common.

            Yet another recommendation that threw money in the furnace.

          2. I had bought SCCB with exactly 100 days to go to redemption…paid $24.92 for about 550 shares which equaled the cash I had open at the time. Figured I could get the divvy and $25/share. Well, I decided to sell on x-div day for $24.93 and just did collect the divvy. It worked ok but I don’t want to be a long term holder of anything they have.

        2. Yes it is most definitly a B Riley deal I am also surprised they didn’t go there. One would think that Opco did some DD before announcing the deal, but then possibly new facts arose once clients started review of SACH finanicals. SACH financials must be deteriorating at an accelerated rate (my opinion not a fact…) This company could be in a very tough spot.

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