This is the section concerning call protection for the pref B. I'm not sure where it says CXW can call the stock at this point. The orginal prospectus was dated 9/8/2000. It's the "later of" and that has not happened. What did I miss?
Section 5. Call Right.
(a) Except as provided in this Section 5, the Corporation shall have no right to repurchase any shares of Series B Preferred Stock. At any time or from time to time commencing six (6) months following the date which is the later of the third anniversary of the Issuance Date or the date which is the 91st day following the repayment in full of the Corporation's 12% Senior Notes due 2006 (the "Call Trigger Date"), the Corporation shall have the right, at its sole option and election, to repurchase, out of funds legally available therefor, all, or part, of the outstanding shares of Series B Preferred Stock by providing written notice (the "Call Notice") of its intention to repurchase all, or part, of the outstanding shares of Series B Preferred Stock on the 30th Business Day following the date of such notice (the "Call Date") at a cash price per share of Series B Preferred Stock (the "Call Price") equal to the Stated Amount plus all Accrued Dividends thereon to the date of redemption. If less than all shares of Series B Preferred Stock outstanding at the time are to be repurchased by the Corporation pursuant to this Section 5(a), the shares of Series B Preferred Stock to be repurchased shall be selected pro rata; provided, however, that in the event that less than ten percent (10%) of the
number of shares of Series B Preferred Stock originally issued are then outstanding, the Corporation shall be required to repurchase all of such outstanding shares if it elects to repurchase any shares pursuant to this
ugadawg98, you are right and I sold the EP pref. A. Dumb mistake that I got out of OK. Thanks.
You're right, as another frend pointed out yesterday. They have a full description of this crappy piece of paper on their home web site along with others.
It's appearing some of these utility preferreds are getting a bit over-priced for the risk levels I think. Maybe still have real problems. I'm not selling what I have but 8-9% does nothing for me at this point for a straight preferred on a utility with massive refi's coming down the road.
Time to look into other industries. Hotels are certainly interesting and lots of candidates but certainly way too soon.
Did you get EP_pc or EP_pa? I'm not sure that EP_pa is what it appears to be. Let me know. Check out Quantum online for a better definition of the terms of these securities. I think EP_pa may be one of those damned mandatory converts.
Polyrat, I bought some EP pref A (15%, $50 par) today after reading a decent write-up from Merrill Lynch. The good news is these utilities seem to be able to refinance and make asset sales. EP was able to refi. it's bank line, which is a great sign that the banks are talking. As long as the BK fear goes away they should be good return. The problem is they are complicated stories for a peon like me to understand. I'm not going to try and be a hero though.
I decided to tender, based on the fact that the market for the preferred subsequently will be very thin, and the bid-ask spread will expand. I'm also not sure that CXW will necessarily call the preferred next year at 25. I'll take the relatively sure thing now, and hope that I don't get prorated...
Polyrat I have a better 16% yield for you...CMM pref G. The company will have $3 in free cash flow, $13/share in assets, all new finaincing package. They recently had a $11.50 common share offer from a large Japanese INsurance firm(their largest creditor), so the backing and cash flow is real, I feel.
The pref G has a $10 par value and a $1.50 dividend. But it also has 3 quarters of back dividends or $1.125. I you pay $10.25 your actually cost is $9.125 becuase of the back dividneds owned, at $9.125 your effective yield is 16.5%. Believe me that a hell of a lot lower risk then 17% on MIR pref A I feel.
Polyrat...this out today on MIR
"S&P said it is reviewing the company for another downgrade because of "uncertainty about the outcome of Mirant's efforts to restructure debt in advance of the mid-July 2003 maturity of a $1.125 billion term loan." Continuing delay in the release of Mirant's audited financial statements is also a factor in the review for downgrade, it said. ""
I am not sure what else it ahead but I'm waiting until the refinancing gets done, I'll have to pay more but it would still be more then enough return in the end if they pull out of the tail spin.
Can you explain what you are talking about with regard to Blackstone and California? Also, audit resutlts - do you mean the outstanding 50mm issue and the 32mm payment (refund) we are expecting?