aja8888
Moderator Emeritus
You guys have more guts than I do, or maybe more money and TIME!!
Moorebonds, here is the updated offer link below for Handy....And yes originally you were correct....They listed an amount of shares they would offer to buy (pro rata) but that was 20%. But this link below clarifies that all shares will get this opportunity.
News
While I would expect the terms of the 20% early redemption to be extended to the new SPLP-A shareholders....I don't see where they explicitly state that, nor where a legally-binding document states that. The only references I see in the press release is the statement that "the terms of the newly issued SPLP-A shares are identical to the original" - but a press release isn't a legally-binding document (unless it is used in an insider-trading case or something like that). The terms of the original legal document is that 20% of the shares issued in the original deal would be redeemed. The press release is ambiguous towards whether this specific provision is extended to the new share count, or if they are merely referring to the interest rate, payment dates, and final maturity provisions. They do state that a prospectus was sent to holders of the Handy shares - but I don't see a copy of this prospectus on the SPLP website to verify precisely what the language was regarding the early partial redemption clause extending to the new shares.
I don't expect SPLP to be that sneaky...but you know how management of publicly traded companies can be! [emoji4] And as a result of seeing some crazy stuff happen over the years, unless I see it in black and white in a legally binding document, it never did happen, and never will happen!
Correct me if I'm wrong but I believe the original SPLPA shares were issued to purchase Steel Excel last year, to be redeemed in cash or common units at a later date, issue "maturing" in 9 years (which seems to be a odd number). Now they issue additional shares for H&H, and give the 20% incentive. They issue the SPLPAT shares to those who did not tender as of the 10/11/17, to prorate their quarterly distribution. After the distribution, the SPLPT becomes the SPLPA and everything is smooth again.
Since SPLP is a profitable conglomerate at this point in time, I look for them to return the marketplace and purchase another company with the same strategy, once H&H is placed under its wing.
I guess I read the 20% mandatory redemption wrong in the article if the prospectus states otherwise.
OK, I'm convinced. Toe in the water with 200 SPLP-A
I too joined the SPLP-A party again. I sold my original shares purchased earlier in the year. Down to SPLP-A, NLY-F, CBL-D preferred shares. Considering selling NLY-F to free up some money to buy back into AILLL if given the chance at a reasonable price.
Reasonable is a very pliable word, Jim. Some people wont buy a penny above par...If the thing had the word “non” slapped in front of call, it would be trading $29-$30... It all boils down to ones willingness to accept call risk and not pay bloated ask prices.
So what is your number?
26.50ish is pretty close to where I bought it the first time around.
Reasonable is a very pliable word, Jim. Some people wont buy a penny above par...
So what is your number?
Thanks, Mully! Limit order in tomorrow for 200! I might have to send you some old grape juice I got laying around!
Caught this new issue, NYMTN, 8% REIT, 10 year fixed (through call date) and then 3 month LIBOR + 5.695%. Not eligible for preferential tax rate. Traded under par on Friday and closed $25.10.
I'm extremely skittish of anything from mREITs, given where we are in the interest rate cycle. Count me out. (coming from someone who still has a few zombie positions in my tax-advantage accounts from other finance companies, including mREITs, that were nuked 8 years ago).
True, if this is the new normal, and rates stay fairly low, it will be able to continue the preferred stock payments...but given the amount of leverage these mREITs have, all it takes is a small increase in rates to put the big hurt on them, and a little more to send them to the graveyard with my old shippers/mREITs/oil holdings.
Wow, poor Moorebonds getting older and conservative... a few flecks of grey, a tighter haircut, the sports car goes, and now the Mreits, too.... Next thing you know the stay off my lawn sign will be up in your front yard!
The next few weeks should be interesting, Brokrken. Just dont worry about the swings and focus on the piece of meat thrown in with the soup bone as Winemaker said (the 2/2020 put) and the maturity date.
Anybody know the dates for SPLP-A on when interest is calculated?
Saw the Ts were trading lower... and it looks like more than a full divi which would make it cheaper... but not enough happening yet...