Sotherly Hotels Baby Bonds to Trade Today

The new 7.25% baby bonds of lodging REIT Sotherly Hotels have been loaded into the brokerages quote system so we expect they will begin to trade today.

Note that there is a chance that some online systems may not recognize the ticker (SOHOK) today and you have to wait until Monday.

Our intention is to buy for models as well as personal accounts.  The issue has a 3 year maturity and this short maturity date and reasonably good 7.25% coupon makes this one a strong buy for us.


6 thoughts on “Sotherly Hotels Baby Bonds to Trade Today”

  1. Hi kaptain–of those few shares traded Friday 200 were mine at 25.55. I had another order in in the low 25’s but wanted to make sure it was actually trading. Much more than I wanted to pay, but it is going to the ‘sock drawer’ for the next 3 years. Will see if we get some volume on Tuesday and better pricing.

    1. Tim, the issue is very odd as it is callable in just one year and matures in 2021. Even at a price of $25.55, you’ll collect $5.44 in interest over the next three years if it is not called, so it’s actually a very nice yield for a short-term baby bond.

  2. It looks like the security traded in the $25.50’s range today. I like the fact that it is a term preferred and was hoping to pick up a few shares around par value, but it’s trading much higher. However, a low limit order could hit in the next few weeks if there is more volatility in the market.

  3. Hi Leonard–yes I am chasing it around right now. Pricing is even higher than I imagined it would be.

  4. Its on Etrade now but volume is showing very light (only 2 shares) with bids at $25.45 and ask $25.70. If interest rates move back above 2.9% then that may bring it down closer to par.
    Have you thought of a maximum you are willing to pay?

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