RE:RE:Premium on FFN may be explained by ATM program.Yes , FFN preferreds are selling at a nice discount. I was loading up more under $9.50, and hoping to add more at the low levels.. 8 % return, plus guaranteed 10$ share price at the temmination date of the fund, so ignore the other noise.
Intellectual wrote: In order to increase the preferred share count to bring it into balance with the capital shares, the ATM would need to accelerate the
selling of preferred shares, so one would expect those to continue trading at a substantial discount to par value.
mouserman wrote: So FTN actually has more preferreds outstanding than commons.
WITH FFN it is the opposite . At last count there are 55,220,000 commons out and only 54,021,000 preferreds out. My guess is that FFN will halt the ATM for commons and push the BUY at MArket for preferreds to get it back to level numbers. AS well , if FFN preferreds stay down until DEC 2024, FFN will see the same thing happen that FTN saw when they consolidated. Will be a lot of FFN preferreds getting cashed in @ 10$ and then a consolidation will have to happen, to bring the number of shares in each back to even number. Unless of course , FFN preferreds get back to 10$ valuation ( or higher) a month before the termination date of the fund.