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The Bank of New York Mellon Corporation Message Board

foreverwhiteroses 18 posts  |  Last Activity: Feb 11, 2016 11:38 AM Member since: Jul 16, 2004
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  • foreverwhiteroses by foreverwhiteroses Feb 11, 2016 11:38 AM Flag

    I've been surprised how the market's faring recently for SAR vs its listed 7 1/2% senior note due 5/31/2020. At the most recent dividend rate, SAR has a current yield of 11.60%. The Baby Bond, SAQ now has a current yield of 7.98& and a yield to maturity of 9.23%. As a senior note, SAQ gets paid except under the most extreme circumstances. SAR's dividend only gets paid after SAQ is paid in its entirety and it's subject to change both up or down... Now granted the trend for SAR's dividends has been upwards, I'd much rather go for the interest payment of SAQ at a 9.23% YTM in this environment than reach for SAR. I am a holder of both and really think SAR is an undiscovered gem in the BDC world due to its relative lack of size but focus on quality tranches, but I'm very comfortable having 4 times more SAQ than SAR. Anyone else in SAQ?

  • Reply to

    Magic Leap and Mersana

    by foreverwhiteroses Feb 3, 2016 4:45 PM
    foreverwhiteroses foreverwhiteroses Feb 6, 2016 8:40 AM Flag

    China - For the record, TINY does NOT own 4.4 mil shares right now according to the most recent 10Q. I don't know the conversion factors for their preferreds, so when all's said and done, they might own 4.4 mil shares, but they currently own 350,539 common, 97,111 Series B preferred, and 635,081 Series A preferred, and it's all valued at 4.663 mil. Are your numbers based on actual conversion ratios for the preferreds? .

  • foreverwhiteroses by foreverwhiteroses Feb 3, 2016 4:45 PM Flag

    Actually, a couple of interesting announcements today for TINY. It looks as though TINY backed into Magic Leap with its tiny investment of 29,291 shares of Series B preferreds which they value at $338,604.. They did not invest in it directly, naturally. The return is too good for that, It was obtained as partial payment from the acquisition of a portfolio company in second quarter of 2015 according to Note 12 in most recent 10q. Having said that, the Series B round of funding was completed Oct 21, 2014 valuing the company at "north of $1 billion" and this new round of funding, Series C, values Magic Leap at $4.5 billion according to Wired. That's pretty impressive, however that still would only value TINY's stake at about $1.4 mil if my math is right. The Mersana news is probably more important. Probably the key to its importance is the possibility of milestone payments up to $750 mil for investors in Mersana from Takeda, but what's not said is the possible timetable for those payments..... I happen to have participated in milestone payments from Takeda in the past from a VC investment and as nice as it's been to be receiving the payments, they have stretched out over 20 years or more.... So again, figuring in a potential rate of return for investment, I wonder just how significant this can prove to be for TINY shareholders. The difference, though, is Mersana is a nearly $5 million investment for TINY, so that's good

    It was good to see some good news that might really be good news for TINYfor a change, It's amazing the gigantic faith the investment community has put in Magic Leap now. Some really big names like Google, Qualcomm, Warner Bros, JP Morgan and Fidelity are all in on it now..... Again, according to Wired, many believe its technology will usher in a seachange as to how we all use computers. Then again it could turn out to be another Betamax as Facebook, Samsung, and MSFT are all working on competing technologies.

  • foreverwhiteroses foreverwhiteroses Jan 25, 2016 10:59 AM Flag

    You're talking about the stock slide, right?

  • Just saw the 8-k filing which said, " According to the [Compensation] Committee’s independent compensation consultant, total compensation excluding previously granted retention awards for the named executive officers was relatively low as compared to the executive compensation at similar peer group companies and investment firms." So they awarded bonuses to everybody! I guess the Committee's independent consultant didn't take PERFORMANCE FOR THE SHAREHOLDERS into account... You want to know what was relatively low??? The shareholders, those who measure performance by their money invested in shares, not compensation, certainly know the answer to that....

  • Reply to

    Anybody held for div?

    by nedelkay Jan 6, 2016 11:42 AM
    foreverwhiteroses foreverwhiteroses Jan 21, 2016 1:13 PM Flag

    Speaking of leverage ratios, it looks to me as if KYN has no other option open but to announce a call for more preferreds if there's no huge pop in price before month's end. They announced a coverage ration of 225% on the preferreds as of 1/15 and KYN's price is down about 8% since then as I write, so that means something has to give..... Assuming they only have the listed preferreds to choose from, which may not be an accurate assumption, anyone one want to speculate which will be called? Seiries F is 3 1/2% coupon but they're callable now at 25.125. G's are 4.60% BUT, they're callable at 25.25 right now... Which is the better one to call? AS I read the prospectuses they do not have the flexibility to delay another call until F's are callable at par after 4/15/15, so what's KYN to do? Despite the coupon, I'm thinking F's are the next to be called due to the lower premium to par necessary to pay, probably in part, but maybe all.... 125 mill outstanding.......

  • Reply to

    Latest Quarter Results

    by vetkim2000 Nov 25, 2015 4:26 PM
    foreverwhiteroses foreverwhiteroses Jan 6, 2016 12:55 PM Flag

    And today DSNY is up 19% in a bad market all because of the great news that they've renewed an MPE contract with Universal that does what? It puts a floor on revenues for another year or two, nothing else, with only faint hope of growing them...... Great rationale to be up 19%. ho hum......

  • Reply to

    Ever getting back to $5?

    by cnelson1967 Dec 28, 2015 2:22 PM
    foreverwhiteroses foreverwhiteroses Dec 30, 2015 9:57 AM Flag

    No need to beat yourself up - if you bot TINY at ANY time, it was the wrong time.....

  • foreverwhiteroses foreverwhiteroses Dec 21, 2015 10:18 AM Flag

    Sooner or later one of these announcements is really going to mean something for shareholders, but to me right now, I can only think "been there done that." I bet maybe 4 or 5 times this year alone, LTBR has put out one of these "meaningful" announcements to a magical giant spike only to be beaten back down again almost as quickly as it spiked... Don't forget, both companies noted this letter of agreement is non-binding and only expresses intended terms and conditions...

  • Reply to

    The Preferreds and Coverage Ratios

    by foreverwhiteroses Dec 4, 2015 8:17 PM
    foreverwhiteroses foreverwhiteroses Dec 17, 2015 10:36 AM Flag

    Bea - Sorry I missed your reply... Good info. I see where KYN just announce another call for anotehr 30mil Ser E, so they are definitely being very proactive in maintaining their coverage ratio and staying ahead of the requirement....That's impressive... That means there's only 30 mil left outstanding of Ser E. I'm surprised the math works out better to call the 4 1/4's at 25 instead of the 4.60's at 25.125....

  • Reply to

    Ownership of D-Wave

    by burger_king_mgr Dec 9, 2015 12:23 PM
    foreverwhiteroses foreverwhiteroses Dec 17, 2015 9:46 AM Flag

    Speaking of giving exact numbers, I don't understand why they'd announce a new round of financing for a company and leave out the overall valuation of the company established by the round. I'm talking about the announcement on ORIG3N. I would think if it proved to be substantially higher than previous rounds, they'd want to crow about it, So, if nothing else, it makes one wonder.......

  • foreverwhiteroses by foreverwhiteroses Dec 4, 2015 8:17 PM Flag

    Well, now it gets interesting.... With today's route on KYN and related midstreams MLPs in the portfolio, I would bet the coverage ratio for preferreds has fallen below the mandatory 225% level given it was at 230% yesterday.... The announced upcoming $60 million call of E's will go a long way toward remedying the situation, but if the route continues, it will be interesting to see just how the credit protection provisions pan out for preferred holders..... If I read correctly, no coverage breach occurs in the ratio mandate unless the 225% level is breached specifically on the last day of the month. They then have 30 days to remedy or the preferreds are then subject to mandatory call... These strong covenants are what got me into both KYN and TYG preferreds. Hopefully we're protected as expected from downside credit risk because of them if this pipeline panic continues. KYN can not declare ANY common dividends if the preferred covenants are broken so the incentive to keep them covered over 225% is very high. It's also interesting that Fitch reconfirmed its AA rating on the preferreds just about a month ago on October 23rd.

  • Reply to

    Partial Call for Preferred E

    by foreverwhiteroses Dec 2, 2015 11:58 AM
    foreverwhiteroses foreverwhiteroses Dec 4, 2015 9:41 AM Flag

    I disagree. Both the 4 1/4's (E) and the 4.60's (G) are "mandatorily redeemable" but that refers to a mandatory event at stated dates of 2019 and 2021. A $60 mil call today is not mandatory under that premise, it's voluntary. They had a choice to call in part either series, but would have had to pay 25.25 to pay the 4.60's vs 25 for the 4 1/4's. My thought was that partially retiring the 4.60's would have quickly made up the 1/8 premium by saving .35% in interest but I guess there must be more involved in the decision, maybe the closer mandatory redeemable date for the 4 1/4's making it more important in their decision. I'm long the F's only so for me, the improved coverage ratio is what's important anyway.. .

  • foreverwhiteroses by foreverwhiteroses Dec 2, 2015 11:58 AM Flag

    I noticed there's to be a partial (50% of outstanding) on Series E preferreds on 12/21/15. That, of course, will improve the coverage ratios for all the preferreds, but I wonder why they chose to call E's when G's have the higher coupon? Granted there's a slight premium call feature still in place for G's but I would think the math would still favor calling the G's. Maybe it has something to do with E's being the shortest maturity of the outstanding preferred?

  • Reply to

    What's With SAR This Past Month?

    by foreverwhiteroses Nov 20, 2015 10:52 AM
    foreverwhiteroses foreverwhiteroses Dec 2, 2015 10:02 AM Flag

    I don't think non material market fluctuation is a matter for IR but you never know.... Regarding preferreds, I did notice Eagle Point Credit (ECC) just priced a 12/31/20 preferred at 7% yesterday when their preliminary price talk was 6 5/8%, so what's happening on SAQ just might be a general weakness in demand for preferreds at the moment. ECC's new preferred will be symbol ECCZ and carries an A- rating from Egan Jones, so, even though ECC's an investment company dealing in dicey CLO's not a BDC like Saratoga, it probably should be considered a better credit than SAQ if for no other reason than company size and reputation for emphasis on top tranches of CLO's.... BTW, I'm long both SAR and SAQ too.

  • Reply to

    Latest Quarter Results

    by vetkim2000 Nov 25, 2015 4:26 PM
    foreverwhiteroses foreverwhiteroses Nov 28, 2015 6:32 PM Flag

    I've been out of DSNY for a year and 1/2 now, but I still check in now and then in hopes of hearing something different.... I originally bailed after 2 years when I gave up on expecting to hear anything good about revenues from Clipstream instead of promises of revenues from it or how contract adjustments on MPE would eventually lead to revenue growth from it too. And what does the quarterly say now? "2015 was a year of progress in laying the foundation for future growth at Destiny," said Steve Vestergaard, Chief Executive Officer for Destiny Media Technologies. "We continued to innovate, furthering our technological advances and have made significant progress in laying the foundation for future growth in both the Play MPE® and Clipstream®." Zzzzzzzzzzzzzz. How many years of foundation laying can a shareholder put up with without translatable results, especially when cash is cut by 2/3 and overall revenues go nowhere? I'd love to hear something good from DSNY, but imho, it's only a faithful, patient, or idiotic shareholder who can continue to hold on. Good luck guys....

  • foreverwhiteroses by foreverwhiteroses Nov 27, 2015 4:34 PM Flag

    Tuesday Stifel priced $300 mil 3 1/2% bonds due 2020 at par or slight discount. Stifel has 4 1/4% bonds due 2024 that are trading at a slight premium, and yet the Baby Bonds, SFN, 5 3/8% due 12/31/22 closed today at 25.30. Doesn't that seem out of line cheap? Granted SFN is callable 12/31/15 @ 25, but there's no way they are going to be called at that time otherwise it would have been disclosed in the prospectus for the 3 1/2's, so to me, SFN has come down since the issuance of the 3 1/2's at a time when it should have moved up. All three are pari passu and all rated BBB- by S&P, but only the Baby Bonds, SFN have the added liquidity benefit of being listed.... I think these are cheap, and with the earliest call being 12/31/15, SFN trading under 25.33 represents zero risk of loss to a call at the earliest possible call date..... Great opportunity IMHO for a bond buyer type investor willing to own a 7 year BBB bond.

  • foreverwhiteroses by foreverwhiteroses Nov 20, 2015 10:52 AM Flag

    Anyone have any theories as to what's fueling the downdraft in Saratoga this past month? It seems to have been a steady drip drip drip drop. I do not see the catalyst for this unless it's concerns about the possible impact of higher interest rates on BDCs or possibly tax related year end selling??? Or maybe the Mrs. is unloading?

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