Still Awaiting a Couple New Issues

From time to time it happens that new issues are announced–or at least SEC documents are filed, indicating a new issue of preferred stock is ‘coming’, but then we never see the issue.

Smaller mREIT Orchid Island Capital (ORC) is one of the latest to file a 424B5 which is a preliminary prospectus supplement announcing a coming new issue. The original filing was on the 11th and we are still waiting.

Additionally CEF Priority Income Fund (no traded public shares) has refiled their registration statement for a new issue of term preferred stock (this would be PFIA-F). In this case Priority Income is following their normal mode of operating–they keep an updated registration on file–and when they believe the time is right they sell the issue. I am not holding my breath for this issue as they have 5 term preferreds already outstanding–from an investor perspective no reason to wait on a new issue.

5 thoughts on “Still Awaiting a Couple New Issues”

  1. Do you think this means ORC had trouble selling the preferred? I think the price guidance was below 7% which seems aggressive for this tiny no name mREIT with a bad track record. Maybe buyers balked?

    1. Sounds reasonable to me. AGNC has not had an easy time selling at 6.125. ARR, which has more than double the market cap of ORC, and is probably safer, had to offer 7%. Hard to see why the new ORC offering would be more attractive than ARR-C.

      1. Still waiting. I was just noticing that ORC has yet to release earnings, and I don’t see an announcement about when they will. Perhaps they concluded they should disclose quarterly results before selling preferred to the public.

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