Financial 15 Split Corp T.FTN

Quadravest updates FTN UNIT NAV @ $16.13 after dist

[mouserman]

So to Sept 29 NAV came in a little higher than i had on the spreadsheet .
I adjusted the cash position to 24% and it came in alot closer. SO UNIT NAV now would be about  $15.72 after distributions. Commons would now have a value of about $5.72. Nice discount , and perhaps a bounce is inevitable.

[mtloly]

The issue is that at a commons value of $15.72, a loss of 72 cents (or only 4.6%) puts FTN underwater. And considering the pref shares will continue to get paid out even if the commons go under, it just means the hole the commons will have to pull themselves out of to start paying dividends again will only get deeper and deeper. Even if the market was to simply HOLD this level, the commons divvy

[mtloly]

Not a commons value of $15.72, but a full FTN value (commons + pref)... not sure what to call it. 

[AnEducator]

That would be the unit NAV. The high dividend alloted to the preferreds will definitely have a deleterious effect on the NAV over time, but given the significant correction we've experienced, there's good reason to believe we could get enough of a recovery to allow for a significant enough premium to allow Quadravest to utilize their At-The-Market selling program. This would actually help