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First Preferred Cap Tr Iv First Message Board

  • talkshow55 talkshow55 Mar 28, 2013 3:43 PM Flag

    Anyone see the volume on OSBCP ?? 600k plus// whew.

    I suspect a stock swap coming.. I hope its not 3 common for 1 preferred. Id take 4 for 1 and be done with it..I dont think we'll have to wait long to find out...

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    • 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.

      Eiher way we wait and see.

      • 1 Reply to frontlineinv
      • 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.

    • what_the_hell_did_i_buy_now3 what_the_hell_did_i_buy_now3 Mar 28, 2013 6:04 PM Flag

      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.

    • that is some volume - how do you do that without raising the pps? was that one large buy?
      and who would go for 3 for 1 swap? = sure not me
      I only have 5400 share though