Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Same as its been. Senior in a wind up or liquidation and junior in a change in control.
The clock is ticking- the preference shares convert to common stock in 3 years.
SO where is SKruf in the pecking order???
I found it. The dividend accrues until the fifth anniversary of the issue date (5/7/07). So it looks like the liquidation preference will stop increasing in this quarter.
I think they can defer until 2016. Is that what your asking?>
I think they can defer until 2016. Is that what your asking?>
Can someone remind me how long the dividends accrue for? Is it 9 years?
H_man... Take a look at FBS-a.. It's a cumulative preferred..(not a true pref but jr debt im told) It has over 8 bucks in back divis It has to pay by june of next year.. The company is doing fine...I told you about this stock when it jumped from 7 to 10 way back when..You responded that you did not like to buy stocks that have already made a move... If you read this by Friday 4,26, The earnings should post , and I would expect another 1 1/2 point move on Monday..Best of Luck.. Have a nice weekend...
H_man... Take a look at FBS-a.. It's a cumulative preferred..(not a true pref but jr debt im told) It has over 8 bucks in back divis It has to pay by june of next year.. The company is doing fine...I told you about this stock when it jumped from 7 to 10 way back when..You responded that you did not like to buy stocks that have already made a move... If you read this by Friday 4,26, The earnings should post , and I would expect another 1 1/2 point move on Monday..
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.
H man... What are your expectations price wise for DCAQP? It looks like you made a bundle on it already.. Congrats..It;s always good to hear from you...
Also paid $25mm to common!
Financials posted last night. The good news is that for the quarter the net income was $36mm.
The bad news is that book value decreased -$40mm when Cerberus & MM paid themselves a $75mm dividend.
DOH!
What's the opportunity cost on this "opportunity?" Sitting at $15!
Last spring I got involved on DCAQP and it continues to be a large holding. It's money good and has $3 in accrued div. I surmise the company is likely to continue tender offers by the affiliate.
H-Man How the heck are you..? Not much conversation since EOSPN got taken out...Are you buying anything? I bought some NTI Last friday and made 10% already... Looks like 40 bucks to me... Time will tell...
Dont forget the tender participation was quite Tepid .
Well, you could argue the same thing for the company. While "that institution" would push the price down significantly if they sold, if the company wanted to make open market purchases of 750,000 shares it would push the shares much higher.
I guarantee you that "that institution" told SKRUF what their price was and the company agreed to it. Then they opened the offer to the rest of the shareholders. Let's be clear that "that institution" was not part of the tender offer.
You should buy more shares then
Im still hanging in there.. I never thought that institution that took the 16 buck deal, was dealing from a position of strength.
Mandatory Potential Dividend Suspension Notice
Potential Dividend Suspension Notice Pursuant to Section 4(b) of the Certificate of Designations
Pursuant to the provisions of Section 4(b) of the Certificate of Designations for its Non-Cumulative Perpetual Preferred Shares, liquidation preference of $25 per share (the “Perpetual Preferred Shares”), Scottish Re Group Limited (the “Company”) hereby notifies holders of the Perpetual Preferred Shares that:
(i) the Trailing Four Quarters Consolidated Net Income for the most recently completed quarter (i.e., June 30, 2012) is $(39.7 million) and the Adjusted Shareholders Equity Amount for the most-recently completed quarter (i.e., June 30, 2012) and as of the date that is eight quarters prior to such quarter (i.e., June
30, 2010) is ($98.2 million) and $77.2 million, respectively; and
(ii) the Company may be precluded by the terms of the Perpetual Preferred Shares from declaring and paying dividends on the January 15, 2013 dividend payment date unless the Company, through the generation of earnings or issuance of new ordinary shares, increases its Adjusted Shareholders’ Equity Amount by the
relevant amounts set forth above by the January 15, 2013 dividend payment date.
Terms not otherwise defined herein shall have the definitions ascribed to them in the Certificate of Designations for the Perpetual Preferred Shares.
http://www.scottishre.com/pdf/SRGL%20Oct%202012%20Potential%20Dividend%20Suspension%20Notice%202012-Q2%20-%20FINAL%20_3_.pdf
Scottish Re Announces Declaration of a Dividend on its Perpetual Preferred Shares and Issues Mandatory Potential Dividend Suspension Notice for the Subsequent Dividend Payment Date (10/12/12)
HAMILTON, Bermuda--(BUSINESS WIRE)--Scottish Re Group Limited ("Scottish Re" or the "Company") announced today that it has declared and will pay a dividend on its Non-Cumulative Perpetual Preferred Shares, liquidation preference of $25 per share (the “Perpetual Preferred Shares”), for the October 15, 2012 dividend payment date, and that it has issued a mandatory Potential Dividend Suspension Notice in respect of the Perpetual Preferred Shares for the January 15, 2013 dividend payment date.
Declaration of Dividend for October 15, 2012 Dividend Payment Date
In connection with the October 15, 2012 dividend payment date, holders of record as of September 30, 2012 will be entitled to receive a dividend $0.3752 per Perpetual Preferred Share outstanding, as determined in accordance with the terms of the security.
Dividends on the Perpetual Preferred Shares first were suspended by the Company in January 2008. Although permitted at times since 2008 to declare and pay a dividend, the Company has not paid dividends on the Perpetual Preferred Shares since the January 2008 dividend payment date. Notwithstanding the Company’s decision to pay a dividend on the October 15, 2012 dividend payment date, there can be no assurance that a subsequent dividend payment on the Perpetual Preferred Shares will be made by the Company, either in its discretion or as a result of the application of the financial tests contained in the terms of the Perpetual Preferred Shares.
Mandatory Potential Dividend Suspension Notice
The Company posted to its website today, and is delivering to holders of Perpetual Preferred Shares, a mandatory notice that it may not meet certain financial tests required for the Company to be permitted to declare and pay a dividend on the January 15, 2013 dividend payment date. Details of the notice can be found on the Company’s website at www.scottishre.com.
About Scottish Re:
Scottish Re is a global life reinsurance specialist with operating businesses in Bermuda, Ireland, and the United States. Its operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited, and Scottish Re (U.S.), Inc. Additional information about the Company can be obtained on the Scottish Re website, www.scottishre.com.
Contacts
Scottish Re Group Limited
Media and Investor Contact:
Dan Roth, 441-298-4373
Chief Financial Officer
http://www.businesswire.com/news/home/20121012005573/en/Scottish-Announces-Declaration-Dividend-Perpetual-Preferred-Shares
News out- paying the October dividend.
BTW, that was a nice find. It took me a few minutes to figure out how you knew that but it was something I completely glossed over.
I am surprised by the complete lack of volume in the past few months. Was hopeing it would drift down and I'd rebuy in the 12-13 range, which looks very unlikely.
I think we are talking about 2 different things. I wasn't referring to yesterday's volume.
Looks like it was all purchased at 17
Geez, didn't realize most of the volume was SCT buying the shares in the open market.
Nice to know they will are willing to buy shares below $15.
The share volume since the tender has been impressive!
0 shares in 2 months and 5,800 in the past 3. Impressive.
The ask is dropping. Currently $14.5.
You are assuming everyone is as well informed as you. Recall that someone sold 1,200 shares on Friday at $15.05 which was the day of the tender expiration. A buyer doesnt get to tender but the seller certainly could have.
You are right, maybe I should appologize, but it does seem that you would at least partially be implying that i) the company, after setting aside almost $90 million for this transaction and only spending around $30, would allow investors to continue making money off of them; and 2) that holders who did not accept the $16 will sell them for less. Obviously things might change and you may still be proven right.
I detect some sarcasm in your reply. No one said anything about $7. Enjoy!
That would be a good trade ... you sell at the Tender at $16, then buy back when it gets to $7 again!!! Great idea.
And then, and then, like ... if they tender at $16 again, then, like, you sell them, and like when it goes to $7 again you buy, and ... wow!! You could like, ..., like, really get rich that way!!
35% participation is a lot lower than I would have expected.
Regardless, I will be buying shares lower in the future.
How long before open-market purchases can begin?
Scottish Re Group Limited Announces Expiration of Tender Offer and Acceptance of 803,707 of its Non-Cumulative Perpetual Preferred Shares (3/12/12)
HAMILTON, Bermuda--(BUSINESS WIRE)--Scottish Re Group Limited (“Scottish Re” or the “Company”) announced today that the tender offer made by the Company pursuant to an Offer to Purchase, dated February 10, 2012 (the “Offer to Purchase”), and the related Letter of Transmittal, dated February 10, 2012 (together with the Offer to Purchase, the “Offer”), expired at 12:00 midnight, New York City time, on March 9, 2012 pursuant to the terms of the Offer. The Offer had been made to purchase for cash any and all of the outstanding Non-Cumulative Perpetual Preferred Shares, liquidation preference of $25 per share (collectively, the “Perpetual Preferred Shares”).
In connection with the Offer, holders of 803,707 Perpetual Preferred Shares, with an aggregate liquidation preference of $20,092,675, tendered their Perpetual Preferred Shares (the “Tendered Perpetual Preferred Shares”) and the Company accepted for purchase all such Tendered Perpetual Preferred Shares. Settlement of the Tendered Perpetual Preferred Shares is expected to occur on March 13, 2012.
Following settlement and subsequent cancellation of the Tendered Perpetual Preferred Shares, there will remain outstanding 3,251,176 Perpetual Preferred Shares, with an aggregate liquidation preference of $81,279,400.
UBS Investment Bank served as Dealer Manager and D.F. King & Co. served as Tender Agent and Information Agent for the Offer.
About Scottish Re
Scottish Re is a global life reinsurance specialist, with its principal executive office located in Bermuda. Its primary operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd., Scottish Re (Dublin) Limited and Scottish Re (U.S.), Inc.
Contacts
Scottish Re Group Limited
Media and Investor Contacts:
Dan Roth, Chief Financial Officer, 441-298-4373
Michael Baumstein, Head of Investments and Strategic Transactions, 441-298-4394
Independently of "why", a lot of "who"'s seemed not to have liked the offer.
I said "why" and not "who."
I have no clue who might be buying (not me). I can picture someone coming in and taking a position with the intention of holding for the $25. Today's volume is significant, hopefully it will be someone with deep pockets and a long-term view.
It's actually pretty simple why someone would be buying above $16. But I'm sure banana12 knows why.
I stand corrected.
To be clear, I am not a securities lawyer. However, just like Martha Stewart earlier in my life, I took and passed a Series 63 exam. One difference - I have a better idea of insider trading.
You don't stop amazing me with you profound knowledge of the legal aspects of securities trading. Any purchase by UBS during the offer period would violate rule 14(e) 5 of the Securities Act. I'm pretty sure UBS would never dream of doing that. but of course someone withyour level of experience and insight already knew that, right?
No need to be defensive.
We received the best guidance a person could possibly get on Ihub from 2 of the top financial minds anyhwere (in EI and H-man) and you're still convinced holding out is best. That's your right and privilege...so do it!
To anyone else thinking of holding out for $25 consider that you'll have to make one HUGE high risk assumption if you do and that is that the next tender offer will be $25. It could just as easily be $18 or $20. Could it not?
They've done one low-ball offer at $5 and now one good offer at $16...is there anything to keep them from doing another low-ball (based on the pps today not another $5 offer)? No. Is there any guarantee, once the pps decays 3 years from now to say $10 or $12 that they won't do another at $16? or $15? or $12? No. Show me where you have a guarantee that the next offer is or will ever be $25. It's not there...you have to assume it is. Big gamble.
The time value of money should be considered.
I dont find slogans ,and comparisons to unrelated issues very helpful. You can quote me..
It remains to be seen who the cliff jumpers are.
Don't forget UBS gets paid an incentive.
Thus, it could buy shares for its own account. Breakeven would be $16.50. Personally, I have thought the bid was running a little to high for a $16 offer.
We will both have to just wait and see the results.
The company could always pick up shares in the market once the tender offer expires and the price drops?
20,000 shares traded today above $16. Seems like some people might not be thinking of tendering.
Liabilities decrease. Leads to enhanced FICO score.
So the homeowner is coming to the bank to ask for a discount on a loan that does not cost him anything. Why?
Most likely because he wants to get his equity out and move into a new home, already has a sale planned, and is trying to make the extra buck. Can't blame him for trying.
If the bank says no, do you think he will decide to stay put? And suffer along with the bank?
Maybe. Maybe not?
The bank has a non-earning asset on the balance sheet with no maturity date or payment stream.
Followers
|
7
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
270
|
Created
|
10/27/08
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |