No. of Recommendations: 3
I am thinking that XKO is a pretty decent choice. 7.75%.

Well, 7.75% is the coupon rate. At the current price of $10.99, the effective rate is 7.05%

However, I herd there was an option for them to buy back at $10.00. I believe it was this summer, sometime.

They've actually been callable at $10 plus accrued interest for a while - since 12/27/2006.

It is hard to find much information on this investment.

Have you tried www.quantumonline.com ? The XKO page on quantumonline has a link to the original prospectus http://www.sec.gov/Archives/edgar/data/829281/0000909518-01-...

Does anyone know if there was an option to buy back at 10? Did they not do the buy back?

The security can be called at 10. It has not been, so far. Given the fact that Lehman Brothers (the Third Party that issued the Trust Preferred) is going through BK, there are probably some additional criteria that would be taken into consideration prior to any decision to call the security. Whether the BK makes a call more or less likely is not totally clear.

AJ
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.