smart thing for long term viability of company would be to use the proceeds to buy back as many bonds as possible at current prices (they could eliminate all of debt).
BUT money will go to pay bank loan first.
wont happen as the bank loan will get paid off first at 100 cents on the dollar instead of buying back bonds at 10 cents on the dollar (which would be most prudent thing to do). Bank borrowing base is getting reduced, that is why asset sale.
just entered Japan to do ETF business.
I think that some mutual fund group or big financial services group losing assets to ETF's may end up buying them.
Schwab has ETF's, but TD Ameritrade, E Trade, Scotttrade, do not.
Franklin/Templeton, T Rowe Price or some other publicly traded mutual fund advisor losing assets may also buy them.
go to web site and pull presentation for 4th Q. Nice slides. Of all the public traded asset managers in 2015, they actually gained assets and market share. Most lost assets. Somehting like $250B in 2015 went to ETF's while $125B left mutual funds.
must have a bunch of ivy league guys on the finance side figuring this all out.
YES prudent thing would be to use cash to buy back bonds as long as they are trading cheap and save as much as possible in interest expense.
Also pay preferreds in additional preferred shares (like Breitburn just did ) to save even more cash.
breitburn started paying preferreds in additional preferred shares instead of cash.
VNR should do the same to preserve cash.
volatility has been interesting.
With the ARI-A in a couple days it went from $25 to $22.50 and back to $25.
I would think that CLNY-a will trade close to $25 in a bit of time again.
Heck you can even trade the 7.5% CMO prE for the CLNY A 8.5% at about the same prices.
In past 6 months there has been a huge disconnect between the price of commercial REITS and how the commercial mortgage REIT's have done.
they need to stop the common dividend to conserve cash (and also the preferred).
maybe they are trying to get as much cash out of company as they legally can before they file for bankruptcy.
they will both be worth $0 if company goes bankrupt.
With bonds trading below 20 cents on the dollar , they are saying BK is a reality.