Open Q to Eric Bolton or George Cates--With interest rates at these levels, why would the company not want to call the preferreds, all yielding 9% or better at call prices, and replace with conventional debt or a convertable? Probably could save 4-5% in debt cost.
The opportunity to refi some of the currently callable preferred is something that we are considering. There are a number of long-term trade-offs associated in swapping higher cost preferred (with full call or retirement flexibility) with lower cost debt (but higher financial risks/leverage), or lower cost preferred (cost of re-issuance, loss of call flexibility), or lower cost convertible preferred (taking some of the long-term upside opportunity off the table for current common owners) to capture some immediate earnings. We'll have more to say in our Q2 release. Thanks for the question.
Thankyou fro responding. I own apts in Boston personally and a lot of MAA stock. I like what I read about your apts winning awards for upkeep etc and have bought since $22 a share. Keep up the good work and stay focussed. I am an appreciative shareholder.