Sutherland Asset Management Corporation (NYSE:SLD) has priced a new short maturity baby bonds at 6.50%.
SLD is a specialty real estate lender and organized as a REIT.
This issue is of interest to us as we will have substantial cash after the Arbor Realty baby bond (NYSE:ABRN-CL) call tomorrow and with the very short maturity of this issue and reasonable coupon it fits right in with our goals.
The new issue has an early optional call date of 4/30/2019 and a maturity date of 4/30/2021. The early call date carries a premium and is at 101%.
We will have to do more due diligence on the issue as we are not familiar with SLD–but if it passes muster we will be a buyer.
The pricing term sheet is here.
The pre-announced ticker on the new baby bond is SLDD–this is subject to change.
https://www.sutherlandam.com/Tax-Information
Looks like the last 2 years, they have not been covering their dividends. I don’t know why they havent cut the dividends. Seems that each quarter .16c out of .37c is return of capital. The CEO is the founder of the external manager.
Hi Mr Lucky–I’m totally unfamiliar with them, but will do some reading in the next couple of days. Don’t figure this will trade this week.
Thanks for the info
I trade SLDA. For some reason at times it quickly drops near $25, and then ascends upward. I have been in and out twice in a year with .45c gains with a month of ownerships.
Tim, if I recall you recently provided a link to a list of stocks preferreds that pay a qualified dividend. Can you post it again? I can’t seem to find it. Thanks.
Hi Leonard–this is off the old website so is a dividendinvestor.com page–I will have one up sooner or later. This should be 99% complete.
https://www.dividendinvestor.com/preferred-stocks-qualified-distributions/
Thanks, Tim. I put the link in a safe place this time. Looks like banks, insurance, and shipping companies pay qualified dividends, generally speaking, while REITs and of course baby bonds do not. Most of my trading is done in a taxable account so this is an important consideration. It also explains why some of these trade at higher prices so others obviously are willing to pay a premium for those that pay qualified distributions.