SWKH - New Exchange Preferred Stock And Traded Debt IPOs October 2023

2023-11-01 11:37:39 ET

Summary

• Carlyle Credit Income Fund priced an offering of preferred stock with a fixed dividend rate of 8.75%.
• LuxUrban Hotels priced an offering of preferred stock with a monthly fixed dividend rate of 13%.
• SWK Holdings priced an offering of exchange traded senior notes with a 9% interest rate.

* October saw two new preferred stock offerings and one new ETD offering, with dividend yields ranging from 8.75% to 13%.

* Here is a comparison against the highest quality preferred stocks in our coverage universe, as ranked by our internal "CDx3 Compliance Score" metric:

* CDx3 preferreds ranked 10 out of 10 are meanwhile selling for an average discount to par of about 12.5% and offer an average current yield of 6.71%.

* Past preferred stock IPOs now trading below par: a look at recent par crosses.

New offering summaries:

Carlyle Credit Income Fund ( CCIF ), an externally managed closed-end fund focused on investing in the securities of collateralized loan obligations (CLOs), priced an offering of 1.2 million shares of its series A term preferred stock due 2028, at a fixed dividend rate of 8.75%, paid monthly. The shares received a credit rating of BBB+ from Egan Jones Ratings Company, and trade on the New York Stock Exchange under the symbol CCIA where they last changed hands slightly below the offering price, at $24.68 as of this writing.

Hotel company LuxUrban Hotels ( LUXH ) priced an offering of 280,000 shares of new series A preferred stock, offering a monthly fixed dividend rate of 13%. The company noted it maintains the right to re-open the new series A preferred stock at any time, a feature it expects to use opportunistically to execute on future opportunities in its pipeline. Filings with the SEC indicate that both the CEO and CFO purchased 25,000 shares each of the new preferred stock, which now trades on the Nasdaq under the symbol LUXHP and most recently changed hands below the offering price, at $24.31 as of this writing.

And life science-focused specialty finance company SWK Holdings ( SWKH ) priced an offering of $30 million worth of new 9% exchange-traded senior notes due 2027. The company indicated that a portion of proceeds would be used to fund future investments. The new notes were rated BBB- by Egan Jones Ratings Company, and now trade on the Nasdaq under the symbol SWKHL. On 10/30 the company announced that the underwriters had exercised their option to purchase an additional $3 million of notes. The new notes most recently changed hands at $24.81 as of the time of this writing, slightly below the offering price.

SEC filings for further information: CCIA , LUXHP , SWKHL .

Past preferred stock IPOs below par

In addition to covering new preferred stock and ETD offerings, we also track past offerings, with alerts when securities fall below their par values. To close this article, we would like to share with you some of the most recent dips/crosses below par we have observed:

See you next time, and thanks for reading!

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