Canadian healthcare services and technology company Skylight Health (SLHG) has sold a small new issue of perpetual preferred stock.
The $25/share issue prices at 9.25% at $21/share for 275,000 shares with another 41,250 shares available for over-allotment.
The final pricing term sheet has not been filed, but the preliminary prospectus can be read here.
The company announcement of the issue can be found here.
Below is what I know of this new issue–
CAUTION–a 9.25% coupon and pricing at $21/share is a huge red flay–do your due diligence.
CUSIP 83086L304
ISIN CA83086L3048
Heck, nowadays, just seeing that The Benchmark Company LLC is the sole book running manager for the offering is redflag enough…. They seem to be the underwriter of choice when even Ladenburg or B. Riley won’t underwrite an issue….;)
2wr–I agree–it was the first thing I looked on the form was who was book running.
There’s an old saying that goes like this:” Heck I wouldn’t even buy this issue with Your Money Let alone mine”.
2WR:
It is possible that even the boys at “Think Equity” passed on underwriting this one.
Think Equity is the firm that underwrote secondary offerings of FATBP at $20 and HCDIP at $15/share.
It seems increased fire danger areas on the West Coast aren’t the only “Red Flag Warnings” out there.
Actually, I think RILY and LTS are the top underwriters for small, unrated securities. Underwriting from them, is a plus for me. RILY in particular is a top-notch broker. LTS has been around since the 1800s.
LI – I think “top-notch” is a relative term when it comes to underwriters…. I certainly don’t disagree that RILY in particular has established a name for itself to the extent that their sponsorship as a manager on a deal now can mean something positive for the company using them… But they most certainly are carving out a name as an underwriter of relatively dicey issuers in the small company space…. What they seem to be doing is finding a way to bring companies’ issues to market via way of co-sponsoring arrangements beyond just managing the new deal….. It’s interesting, it’s creative, and there’s a reason their reputation is growing, but what they’re doing is top-notch in a far from top-notch sphere of companies… Don’t get me wrong… I wasn’t attempting to knock either RILY or Ladenburg. In fact, I’ve owned RILY since it was trading in the teens and have been a big player in their notes all along, but unquestionably, I can imagine some of the companies a Benchmark is bringing to market probably approached RILY or Ladenburg first and got turned down…
It’s always a matter of degree.. As an aside, in my Wall St. days, I worked for an old fashioned, very well known white shoe company (Dillon Read) with a stellar reputation for investment banking….. I brought what turned out to be Cumulus Media to them as a possible IPO candidate…. They turned Cumulus down because they didn’t fit their image as investment bankers… The point was that the same food chain probably exists now all up and down the spectrum and what The Benchmark Company will underwrite was probably turned down by the likes of RILY et al first…