Scottish Re Group Ltd Perp Pfd (SKRUF)

[h_man_investor]

They just skipped their 6th div so 2 directors get added but since an affiliate owns 57% of the pref shares they will vote their own slate.

Preferred shareholders really don't have much teeth in this one. Historically the company didn't provide financials and the company was happy to repurchase shares at a huge liquidity and information discount. I think they will continue to try and scoop up shares at a discount through tender offers. Eventually they will redeem the shares when the fund is dissolved (since its part of a PE fund the term of the fund requires it to terminate at a certain point. Estimated to be 5 years).

So this will continue to accrue dividends, probably not pay a divided to keep the price low, but eventually will get redeemed at $25 and accrued divs paid. There is certainly enough assets to cover the preferred. If redeemed in 5 years with accrued div it's a 14% annualized IRR.