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Credit Suisse High Yield Bond F Message Board

  • umbrella_pine umbrella_pine Sep 20, 2010 5:25 PM Flag

    Rights have landed

    Showed up in my account today. Trading at 6 to 6.5 cents pretty much as expected.

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    • Yep, Scottrade will charge $25 to exercise right to buy shares at discount, which may prompt those with small positions to sell rights or let expire, as it may not be that attractive to participate, unless they purchase additional rights. It’s a shame you cannot buy the discount shares online @ $7. However those who have large positions may find it still attractive depending on their position and amount of shares they have. I have a large position, so the $25 would not have as much impact on me. Of course it will also depend on the unknown selling price which is speculative at this point. I guess each one has to crunch the numbers to see what will be the most beneficial for them to do. But I would like to hear from others who have different brokers, as to what they are charging or doing different.

      GLTA

      • 1 Reply to houtech0829
      • Well I'm POed. I'm with Wellstrade and under normal circumstances I would have just sold the rights myself assuming they actually gave me the ticker symbol for them. In wellstrade if you got the rights the ticker shows up as DHY- and if you try to sell them yourself it says symbol does not exist.

        I could have just sold them myself for no fee. But instead I had to call Wellstrade Investments. Some guy on the phone said oh yeah its DHY'R and hit 2 buttons on his keyboard and said sold, that will be 25.00 commission. for 40 dollars worth of rights.

        Load of suck. I swear, I got a small position and I get knicked most of it cause some extortionist on the phone. Think I'm gonna call them back tomorrow and complain. Just for the hell of it.

    • You are correct. I got tripped up. The NAV has little to do with the rights value which is effectively 2.5% of the share price.

    • So, maybe I'm misunderstanding this. I have 1000 shares of DHY. So I got 1000 shares of rights. You have the option of getting 1 share of dhy for 3 shares of rights?

      That seems better than just getting 40 - 60 dollars for selling off the rights.

      Or am I misunderstanding?

    • You will buy the new shares at a 7.5% discount to the average of the last 4 days prior to the rights issue expiring. Not sure on the transaction cost, if it is $25, I'll sell my rights. I'm holding at $2.60/share now. Also they haven't said what the new dividend will be after the offering/dillution is done.

      GLTA

    • Who is your acct with? I have seen nothing in my acct with Scottrade.
      If I wanted to buy shares with my rights, when would be the best time or doesn't it matter? If the price is based on a future share price wouldn't it make sense to get shares now instead of waiting or doesn't it work like that. I'm a little confused. Do the rights have a symbol? If so what is it?

 
DHY
2.32-0.02(-0.85%)Aug 28 4:00 PMEDT