YH:
Medley LLC, the operating company of
Medley Management (NYSE:MDLY) will be selling a baby bond issue with a moderate length of time until maturity. These $25 baby bonds have a maturity date of January 30, 2024 with a coupon of 7.25%. There is an optional call date starting on January 30th, 2020 where the bonds may be called for $25 plus accrued interest.
Medley Management Inc. is a holding company which is the sole managing managing member of Medley LLC. The company is an asset manager with over $5 billion in assets under management and their revenue is entirely derived from management fees.
You might recall that
just last week we purchased the Medley LLC 6.875% baby bonds (NYSE:MDLX) at a purchase price of $24 giving us a current yield of 7.13% on purchase. The older issue MDLX has a maturity date in 2026 which is 2 years longer than the new issue, but at this point in time we don’t believe that the minor differences justify a move to the new issue. For investors looking for a security with a shorter maturity this issue might fit your needs. It is likely that interest rates will resume their move higher in the next 3-4 months so for those sensitive to movement in their portfolio net asset value issues with less time until maturity tend to move less violently when interest rates are hiked.
Because this is a debt issue it will not trade on the OTC Grey Market prior to trading on its permanent exchange and while the official trade date of the issue will be January 18th it is not known when official exchange trading will begin.
Further details of this issue can be found here.
