I'm just holding for maturity anyway. I have in IRA and RothIRA, so cannot leverage or use for margin, so I don't care how they trade between now and maturity. Purchased 3500 shares at under $20 so I'm getting 9.3%+ return on investment and an additional 20%+ kicker when they mature or are called.
Nobody said they were going to trade on FINRA. FINRA is not a market place. It's a regulator
The Company disclosed in the news release that was issued on Tuesday
morning that the bonds will trade on the OTC on June 27. We are not aware
that bonds can trade on "FINRA" although FINRA does assign the OTC ticker.
... this is from IR at PNX
I have owned numerous issues that trade on FINRA or the OTC markets. I believe PFX will trade on the OTC markets and will be quoted as they are now. Commissions will be set by your broker and should be no different than now. Many companies will after a while tranfsfer back to a listing. I suspect Nassau will start buying these baby bonds in earnest whilst they are at a discount to par. If they get rated they will be almost investment grade and worth about $25+
I had some concerns that PFX, once delisted, would have to trade in typical $1,000 bond increments since it will be reported thru TRACE. Based upon info from the regulatory people, that will not happen. It will continue to trade with "baby bond" pricing. PFX will be classified as an Equity Linked Note [even though it isn't one] and reported as such. Below are the reporting rules for Equity linked notes:
TRACE Reporting of Quantity and Price of Equity-Linked Notes
FINRA wishes to clarify the issue of reporting to TRACE quantity and price of TRACE-eligible securities that are equity-linked notes (ELNs).
Equity linked notes (ELNs) in most cases differ from corporate bonds and other TRACE-eligible securities in unit count and quote conventions. This notice reminds firms of how to report these ELN transactions to TRACE with regard to price, commission and quantity (size):
Price: For an ELN, price is a dollar value (instead of a percentage of par, as is typical for other TRACE-eligible securities). The price of an ELN should be reported as the dollar price per share. For example, the price of an ELN bought (or sold) at $7 per share should be reported as 7.00.
Commission: For an ELN, commission should be reported as the total dollar value of commission charged, as is the case for all TRACE-eligible securities. For example, if a commission of $25 is charged, the commission should be reported as 25.00.
Quantity: For ELNs, Firms should report quantity as number of shares traded times the price expressed as a dollar value (as described above). If, for example, 200 shares are traded at $7 per share, the quantity should be reported as 1400.00.
Thanks for the information. I checked BB. It is a callable bond with maturity in 2033. Maybe it will be called soon.
BTW, have you done any arb on FCS? ON has a tender offer on FCS till 6/23 @ 20. Not sure how long would take it to tender and get the money. Sounds like free money.
PFX, even though it will continue to trade now via the OTC market, with the nbew owners injecting $200 mill in working capital, the CT and NY regulators kissing the deal, PNX balance sheet will be STRONGER than ever, PNX will start showing good profits, better profits, and it's baby bonds at 20.50 are yielding about 9%
You can not find a quality baby bond like PFX anywhere yierlding anywhere near that anount, maybe 7% at best.
That means PFX will drift towards par $25 very quickily IMHO
Congratulations! I had a limited sell order on and bounced to my computer this morning to cancel that order the second I saw the news:-)
According to Bloomberg, average NY review time is 104 days, meaning they should have been approved in 01/11/16. Its approval rate is 96% though. If you got into this position earlier, considering PNX went up a lot, I would have just cashed in without worrying about those edgy probability.
last 5 minutes saw frenzied activity this arvo in both the PFX and PNX
get in first thing tomorrow morning)
i think this is it m8
the action we waited for, someone knows the NY reg people ok'd the deal............ IMHO
if the merger is supposed to close by June 30th,then the PNX price should be approaching $37.50,but it's falling daily, albeit on very small volumes.
Anyone heard anything?
Anyonbe have contact info for Nassau?
PNX's IR people just say they expect to close in the 2Q, and waiting for reg approval from NY
they responded that they expect as stated in their last report that the transaction is expected to close in the 2nd quarter.
So, between today and June 30th, up to 6 weeks to wait and see
I have asked IR much the same on Friday, but I did not receive a reply on Friday.
I will follow up on Monday, and post here anything I glean
Can't find anything on NY state's website as to timing of hearings or the like. Anyone have insight into what their timing is? Any thoughts on current drop below 37? Do arbs know or suspect something related to NY.
PNX goes out with a bang. Open block net death claims were $68 million unfavorable to expectations. Six claims with a $10 million retention level, versus the more typical one per quarter. This is routine now. Good luck to Nassau. I wonder if there gonna regret this.