Sometimes the Prospectus is Wrong

A number of folks–ourselves included, caught a filing with the SEC from Global Ship Lease (GSL) that corrected an old error in a prospectus. mbg and 2whiteroses caught and noted the filing.

The company had sold a new 8% baby bond (GSLD) on 11/14/2019 and the preliminary prospectus stated that the ‘record date’ required to receive the interest payment was the 15th of January, April, July and October, with the interest payment date the last day of February, May, August and November.

I remember numerous folks pointing out in January, when the share price dropped that it seemed strange to have an ex-date 6 weeks before payment date. In fact brokers had the date posted as 1/14/2020 for the ex-date which in hindsight we know was incorrect.

The company correction is here.

We have corrected our data showing the correct ex dates.

Only goes to show that folks catch details–many here had questioned the ex-date at the time.

7 thoughts on “Sometimes the Prospectus is Wrong”

  1. WTH! I had sold part of my GSLD with the expectation that the ex-div had past and that I would receive my payment end of Feb. So instead of selling for a gain, it turns out I sold for a loss! I’m calling Etrade.

    1. Yes Landlord—I am positive they (etrade) had it posted wrong because that is where I get my info and I originally had 1/14 on the spreadsheet.

    2. I spoke with my platinum Etrade rep and they convinced me there wasn’t much they could do and that I should contact GSL IR. I did and they asked me to send them my trade confirmations showing my sales and that they would get back to me. Guy from IR was very nice but he works at a third party IR company and not GSL. We’ll see what happens.

  2. Very good because I recently bought this under par totally expecting to get this quarter’s interest payment. Did see a discrepancy on certain sites but assumed it was an error. I like this issue.

    1. Good for you. I bought slightly OVER par before 1/14 expecting I was getting a quick dividend. Oops, guess not.

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