Replies to post #29401 on Traders Cooperative

[Joe Stocks]

LEND - Just thinking out loud here... >>The acquisition remains structured as an all-cash tender offer for all outstanding shares of Accredited common stock to be followed by a merger in which each remaining untendered share of Accredited will be converted into the same $11.75 cash per share price paid in the tender offer. The outstanding 9.75% Series A Perpetual Cumulative Preferred Shares, par value $1.00 per share, of Accredited Mortgage Loan REIT Trust <<
http://biz.yahoo.com/bw/070918/20070918006751.html?.v=1

>SECURITY DESCRIPTION: Accredited Mortgage Loan REIT Trust, 9.75% Series A Perpetual Cumulative Preferred Shares, liquidation preference $25 per share, redeemable at the issuer's option on or after 9/30/2009 at $25 per share plus accrued and unpaid dividends, with no stated maturity, and with distributions of 9.75% ($2.4375) per annum paid quarterly on 3/31, 6/30, 9/30 & 12/31 to holders of record on the date fixed by the board, not more than 45 days prior to the payment date. Dividends paid by preferreds issued by REITs are NOT eligible for the 15% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company.<<
http://www.quantumonline.com/search.cfm?tickersymbol=AHH-A&sopt=symbol

I have no idea where AHHpA will open this am. It closed last night at $10.50. They paid a a 61 cent dividend this quarter even with their problems. With Lone Star now the new owners aren't the preferreds now more secure? At 9.75% interest I would think the company would be calling them in 09' @ $25, or buying them back in the open market until then.

If Lone Star is buying all the shares and adding more money to the deal, (>>In addition, Lone Star has agreed to provide to Accredited financing of $49 million, approximately $34 million of which will be applied to extinguish outstanding debt from one of the Company's creditors, leaving approximately $15 million of additional liquidity for the Company.<<) wouldn't it appear that Lone Star is committed to make this work?

Anyway, I will be watching the open. These were selling for as high as $20 in July.

Thoughts?