RE:BK unit NAV to Sept. 26= approx: $20.25mouserman wrote: My spreadsheet has BK losing about 80 cents since the midmonth update, so commons now carry a value of about $10.25. With the last trade @ $12.93 the premium is $2.68 and that works out to 26.1 %.
Very safe for distributions but could be further capital losses from here as well. The distribution will be reduced as well if the current share price of th commons persists for the last 3 trading days of the month.
Two points regarding BK: 1) BK is a prime candidate to be the next Quadravest offering and 2) the NAV was $14.44 when the distribution was increased from 10% of market value to 15% of market value. As of today with yesterday's bank selloff and being ex divi the Nav is now below $10. While I do not pretend to know what NAV level would trigger a reversal back down to 10% they must be getting close. If they are considering a distribution reduction I can't believe there would be an offering until sometime after, however I do believe one or the other will take place shortly ie the next two weeks.
Full disclosure BK is my largest short position of over 40,000 shares.