Rumors are the deal size has been increased from 150mm to 250mm, maybe priced today hearing 10%. The PrB looks like it is non callable until months after the later of 3 years after it was issued or 91 days after the retiremtne of the 12% notes. Looks like that means waiting for the 3 yrs after issuance (not sure exactly when that was do you know, was it 4th quarter of 99 or 1st quarter of 01??) Regardless the face (and call) will be at 24.46, So it looks like you may have the stock for another year or so but wouldn't expect it to trade much over 25. deep
I hope you're right, because I'd be perfectly happy if they are never called and I can keep getting my yield. If they don't call them and the company keeps improving the balance sheet, they'll hit $30 (10% yield).
Because I'm looking out to B going cash pay in 9/2003 (it's a PIK preferred) and it was a 15% yield as opposed to 11% on the A which is cash pay. I've made good money on the A's (I sold out) and have got B's all the way up to 19.50 and some at much lower prices. Any time it's traded down to a 15% yield, I've nibbled some more. In my opinion, the spread between the A & B preferreds due to the B being PIK is excessive given the improving fundamentals and balance sheet restructuring. If the B traded at the same yield as the A, it would be trading upwards of $25. In the mean time, I'll keep accruing 15% yield in new shares.