That's what I wondering. If they want to buy back 50,000 shares do they have to buy back a share of LNCO and LINE?
So if management wanted to do a buyback, what would the logistics be? I thought that every share of LNCO was backed by a share of LINE. So could they buyback a share of (cheaper) LNCO and retire the share of LINE? Anyone know how it would work?
Very interesting concept mardermj.... in the annuity you have a guaranteed 100% loss of prinicple, but a guaranteed lower income stream. You could take the extra $25K ARR throws off every year and buy something more conservative like O at 5% and pick up a more stable $1,250 a year in dividends. So after 2 years you would have another $50,000 paying out $2,500 a year. Helps take the risk off the proposition. Every year ARR survives, you stand a greater chance of succeeding.
I used to own some Cole Real Estate. I get notice of a settlement in Polage vs Cole. It reads to me that they agreed there was no way to benefit the class holders........ But let's go ahead and pay the lawyers that sued....
I thought it would make more sense to borrow at 4% and buy back the shares. Later when price recovers and they issue new shares, they can pay back the debt.
It would seem that O swapped out 220 million of 6,75% Preferred for $225 million of 4.24% notes. I don't know how much impact that will have but sounds like a good deal.