A three to one swap of OSBCP for OSBC could make sense. While the rules are, whatever you can negotiate, I would expect them to pay the past due interest and then do a swap for the $10 par value. Maybe offering $9.50 in stock for each share of OSBCP. With OSBCP their may be a restriction that would require them to pay the interest before doing a swap. It seems with FBS-PA they received consents to eliminate a lot of the restrictions. I don't think OSBCP went through that process.
Funky things can happen on the last day of the quarter. I do think that offering to swap preferred for common makes sense at some point for this company. They would not pay the interest before making a swap as that would require regulatory approval that they wouldn't get at this point.
I don't think OSBCP has a restriction that requires paying back interest before a swap can be made, but I'd have to check the prospectus. Even if they did have such a restriction, they could always do a simultaneous consent vote (2/3 typically required) to void it at the same time they made a swap offer.
I'm guess that the big block trades at the close were just window dressing though. Probably 2 related funds moving a block between themselves.
Looking back at the level 2 data, it looks like 150K were traded @ $9.00 and then a few hours later another 445K were traded @ $9.00 and $9.05.
There are only 2,750,000 shares outstanding, so depending how you count the trades it was either 10.5% of the shares if they were double counted or %21 if the shares were just counted once. Since almost all the shares traded at just one price of $9.00, I think it was just counted once.
So we now have at least one entity owing 20%+ of the publicly traded trust preferred, and probably another entity or even the same entity owning the bulk of the TARP debt. I would expect that something is in the works buyout or exchange wise and it wouldn't surprise me if Hildene's name pops up at some point in the future.
My notes show there are 3,162,500 shares of the OSBCP preferred outstanding. I don't recall exactly if it was the broker over allotment or a secondary issue at a later date that took it up from the 2,750,000. Go to Quantum online and look in about the middle of the August 2012 suspension notice for this security. it references the $31.6 mllion outstandng at the time. Still a healthy percent that traded.
I saw two trades... one for 150k then a few smalls then the next time I looked it was over 601k. I suspect a cross trade between a couple of institutions which would explain the lack of price movement. Ill try to check the time and sales...