Transocean's stock is under immense pressure for a number of reasons. NYSE recently issued a compliance warning which is typical for stocks that trade under $1 for a certain period of time. More here:https://www.deepwater.com/news/detail?ID=24766The debt is under pressure too which is understandable also. As to bonds... I recently found out that several issues incl. CUSIP 893830AY5 (6.5% of Nov 15, 2020!) have a pending tender offer. More here:https://www.deepwater.com/news/detail?ID=24736Kind of surprising as the maturity date is just a month away. But I suppose if lots of holders jump on this "deal" the company will save a good amount so perhaps this is one of those it's-worth-a-try situations?My position is small and I intend to hold my 20's until the end! Hoping I'll just get par value plus interest without any surprises.
Transocean Ltd. Announces Early Results of Cash Tender Offers and Extends Offer of Total Consideration Through Expiration TimePress release URL:https://www.deepwater.com/news/detail?ID=24776As of Oct 26, about $350MM of principal has been tendered it looks like. About $75MM of $115MM outstanding 2021 notes have been tendered. Looks like plenty of hold outs when looking further out. Imagine most holders are going to ride the 2020's out until 11/15 maturity.
Kind of surprising as the maturity date is just a month away. But I suppose if lots of holders jump on this "deal" the company will save a good amount so perhaps this is one of those it's-worth-a-try situations? My position is small and I intend to hold my 20's until the end! Hoping I'll just get par value plus interest without any surprises. =========================================There's a lot of logic to your position. On the other hand, I'm still kicking myself when I look at my brokerage account, over the fact that I could have sold my Sears Holdings bond for $88-$90 the week before they filed for Chapter 11. I thought the price was ridiculously low, so close to the maturity date. (They filed for Chap. 11 on the maturity date. I guess I was the robber baron who forced them into bankruptcy.) It's now selling for about $6, or $300 for a $5,000 bond. Obviously some people knew or suspected something, but I was too smart to notice. On the other hand, there was no big tender offer like this, that I remember.More recently, Tupperware did one of those lowball tender offers this summer, at a price of about $47, as I recall. Their problem is that with the pandemic, social distancing requirements have put an end to in-home Tupperware parties. I passed that one up, too, figuring/hoping that this is a short-term problem, and even if they hit Chap. 11, it will be a thing to buy time. So far it's worked. I don't know how many people took them up on it, but the bond price was back to about $80 the last time I noticed.Bill
Thanks for sharing re: Sears (yikes!) and Tupperware. Transocean (RIG) may end up like Sears. We'll see.Now, it's interesting that Tupperware is struggling as social selling I believe has been booming this year, just not via the old in-home party channels but rather online. So that may be propping up the stock. I believe the bonds are in default -- a search the other day picked up some Tupperware bonds maturing within 18 months and they were at a very high yield and rated D -- but I have not studied the situation in much detail. I have small positions in short-term bonds (under 18 months to maturity) of Macy's, Ford, RIG, Genworth and Teva... probably enough for now although GEO Group is giving me the itch looking at some of the 2023 and 2024 notes, not gonna lie... :)
Maturity day is here. Got my principal back but no interest at all. Moody's downgraded this issue to WR which I believe is default. Curious what will happen from here.
Maturity day is here. Got my principal back but no interest at all. Moody's downgraded this issue to WR which I believe is default. Curious what will happen from here. =============================If today is the maturity date, you may often get two separate deposits to your account for the interest and principal. Stay tuned to what's going on in your account.And I think the rating for a bond actually in default is D. WR stands for Withdrawn Rating, which is sometimes applied when the issuer company has done something in a reorganizational sense, so that the bond issue needs to be reevaluated. In this case, it probably just means that the rating no longer is relevant because the bond issue is no longer outstanding.Bill
Of all of the various positions I've had mature, this issue is the first to be highlighted with the WR designation. So something new. (I knew that this bond issue would not be a smooth ride but rather an educational experience!)I checked the activity on the account and only one deposit is showing up. Asking the broker about what's happening. The amount I received -- full principal at par or $1000 per bond -- is about what the tender offer was. The offer was something like 97% of face value plus accrued interest if I remember it correctly. I calc'ed it to be a total of right around $1000 per bond for this particular CUSIP. Interesting.
Never mind. Just checked the account yet again. The interest is posted now too. It was certainly not there before noon. May have been an issue on the broker's end. (One time, I received DOUBLE the interest on a particular bond at maturity point -- that was corrected before the end of the day so things happen.) The issuer did not default after all. I ended up with a pretty solid return on this Transocean issue.
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