BDC Trinity Capital (TRIN) priced their new issuance of baby bonds last night with a coupon of 7.875%.
It is likely (although not stated for sure) that part of these proceeds will be used to redeem the TRINL bonds which have a maturity in 1/2025.
The pricing term sheet is here.
Seller made no concession if you consider the “dirty” price of TRINZ. Big contrast to OXLCI, DCOMG, BOH-B, and even NEWTG.
What does “dirty price mean”?
The “dirty price” would include accrued interest from the most recent ex-dividend date. I learned that term from 2Whiteroses a few years ago.
As opposed to the “stripped” price. Because stripping is dirty?
Dividends accumulate from the pay date, though the price fluctuation starts at the ex-div date.
https://www.investopedia.com/terms/d/dirtyprice.asp#:~:text=A%20dirty%20price%20is%20a,a%20clean%20price%20does%20not.
What is your calculation of the stripped price of TRINZ?
“dirty” price of 25.21 minus accumulated interest since the last pay date June 30 approx 9 cents, stripped price would be 25.12. That’s what I use to compare prices across time.
So are you saying that if the new 7.875% baby bond settled today, it should trade at $25.12 or $25.21 based on TRINZ?
I asked the question wrong. Should TRINI trade 12 cents or 21 cents below TRINZ?
Weird things can happen when a new issue begins trading. I’d watch for a low price and grab it if you want it. I’d say the difference should be the amount of the accumulated dividend, currently 9 or 10 cents. And an insignificant factor for the extra time.