RE:RE:RE:BK unit nav to DEC 29 @ about $20.34
mouserman wrote: Yes , good call , with the high premium BK likely to garner some interest in an offering.
However i do believe DFN is the most likely to do one, as i would imagine by now the level of preffereds compared to commons has gotten out of whack . Likely to need an offering where more preffereds are part of the equation than commons in attempt to level up the A shares vs Preferreds.
40% premium level is a no brainer for an offering, altho i am not sure how much action they would get with the DFN commons falling close to the 15$ level for paying to commons.
navgod wrote: mouserman wrote: So the spreadsheet saying BK gained about 8 cents since the mid month update, and that means the common shares have a value of 10.34 before distributions and about $10.10 after distributions are dished out.
Premium then would be $3.13 or about 31%. Only DFN has a higher premium that i have seen.
Because Bk.pr.a trades at a small premium the premium for BK is even more impressive vs DFN where DFN.pr.a trades at an 80 cent discount. This is no surprise given the 8% coupon for BK.pr.a and the 5.5% coupon for DFN.pr.a. Given the disparity between the values of the pref shares I find using unit NAV comparisons more valid than common shares alone. ps I feel like I have been calling for BK new issue forever but Quadravest must have some post Xmas bills to pay so expect an issue early in the new year. GLTA
I really appreciate the posts, I have learned a lot from you on these split shares.
One thing that is confusing me on the dfn situation that your describing is would the offering be beneficial to the stock price or negative. Sounds like the preferreds are a a discount so I am making an assumption this would drive up the price? I'm not sure so that's why I'm asking.
thanks Mouserman for all the info.