tag:blogger.com,1999:blog-2080506270244832638.post5486429289953613237..comments2024-03-28T07:17:13.573-05:00Comments on Clark Street Value: ZAIS Financial: Merger w/ Private REIT, Tender Offer, ZAIS GroupMDChttp://www.blogger.com/profile/10679835609782815537noreply@blogger.comBlogger16125tag:blogger.com,1999:blog-2080506270244832638.post-25487597435069274182016-10-31T15:08:23.373-05:002016-10-31T15:08:23.373-05:00TY. I don't have the SLD shares yet, but I jus...TY. I don't have the SLD shares yet, but I just saw in my interactive brokers account the cash from the tender.Akhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-28056396150009056562016-10-31T09:30:54.452-05:002016-10-31T09:30:54.452-05:00No inside knowledge here. Final tender results ar...No inside knowledge here. Final tender results are to be announced today, so maybe later this week or early next week? I hope.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-76640255222899741752016-10-31T09:23:41.122-05:002016-10-31T09:23:41.122-05:00Do you have an idea when we'll get the cash / ...Do you have an idea when we'll get the cash / stub?Akhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-49222080212974878002016-10-30T20:27:21.690-05:002016-10-30T20:27:21.690-05:00I don't there any options available on ZFC? T...I don't there any options available on ZFC? Too small. Yeah, I didn't want to get too cute with this one anyway, the 70% tender was a nice surprise. Still anticipate it falling after the transaction is completed and old Sutherland shareholders get some liquidity. But after the dividend, and 70% pro-ration, not a lot left to be too worried about, worse case you could hold the SFD stub for a little while and likely be fine and wait for it to trade alongside peers.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-87226441011432591592016-10-28T16:57:51.062-05:002016-10-28T16:57:51.062-05:00Given the price movement up until the tender I tho...Given the price movement up until the tender I thought it might actually trade better than it has. I'm not sure what kind of trading is going on as not many can actually trade at the moment. Ie, if you weren't active enough to tender, are you active enough to buy / sell?<br /><br />On a side note, should we have tried to buy puts against ZFC going into the tender knowing that the price would fall post-tender?Akhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-61003322397616346522016-10-27T10:13:47.377-05:002016-10-27T10:13:47.377-05:00Yes, surprisingly high and a nice surprise. Looks...Yes, surprisingly high and a nice surprise. Looks like ZFC is trading at an implied 80% of proforma Sutherland book value, not crazy low but we haven't seen the previously locked up shareholders sell yet.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-47211099016112530122016-10-26T21:41:20.771-05:002016-10-26T21:41:20.771-05:00~70% proration http://www.prnewswire.com/news-rele...~70% proration http://www.prnewswire.com/news-releases/zais-financial-corp-announces-results-of-tender-offer-300351782.htmlAkhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-14968517953708354682016-09-28T15:30:31.657-05:002016-09-28T15:30:31.657-05:00Quick update - shareholders on both sides approved...Quick update - shareholders on both sides approved the deal, Zais Financial announced the tender offer to buy 4,185,497 shares at a price of $15.37, it expires 10/25/16. The merger is expected to the close the following day, 10/26/16.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-41124982269974200702016-09-15T15:45:46.100-05:002016-09-15T15:45:46.100-05:00The record date is 7/19, still a few months after ...The record date is 7/19, still a few months after the deal was first announced, not ideal but there should still be some arbs in there to help the vote along.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-25916092515376222922016-09-15T15:13:30.855-05:002016-09-15T15:13:30.855-05:00Regarding the risk of nonapproval the record date ...Regarding the risk of nonapproval the record date passed long ago so the arbs won't be participating. I think the biggest risk is that they have to try several times to round up the vote. But they sold the money making part of this business so the stub is getting sold period.johnheider1https://www.blogger.com/profile/17168829213279094039noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-90764842349267880082016-09-15T09:29:06.490-05:002016-09-15T09:29:06.490-05:00The deal is structured in such a way that it's...The deal is structured in such a way that it's only a vote on the issuance of shares which is a lower hurdle, just a majority of votes cast. Now you also have a certain percentage of event driven investors who will be voting for the deal as well. It's a risk, could end up with an TICC (I think?) situation where it gets voted down and a disinterested manager is still in place. And the company is a REIT, the surviving company will be a REIT as well, no K-1's, it won't qualify for preferential tax treatment but doesn't cause the same problems as LPs in retirement accounts.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-6448869438530961812016-09-15T09:10:54.751-05:002016-09-15T09:10:54.751-05:00Any thoughts regarding the vote not going through?...Any thoughts regarding the vote not going through? Also, this company is an LP, right? So wouldn't be applicable for non-taxable accounts?Akhttps://www.blogger.com/profile/09646479250565629294noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-7635649086038580092016-09-15T07:59:33.527-05:002016-09-15T07:59:33.527-05:00Thanks. I will be doing the PG exchange offer, bu...Thanks. I will be doing the PG exchange offer, but the amount of PG being exchanged is rather small and COTY doesn't look cheap to me so I don't have much value to add beyond that.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-50019747299973708352016-09-15T07:57:24.378-05:002016-09-15T07:57:24.378-05:00That's where sizing comes in, after the tender...That's where sizing comes in, after the tender it'll be one of my smaller positions. If I have to wait a quarter or two for the discount to close while collecting the levered up dividend I'll be okay with that. Thanks for the kind words.MDChttps://www.blogger.com/profile/10679835609782815537noreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-18712444537626096642016-09-15T06:50:59.017-05:002016-09-15T06:50:59.017-05:00Wow you really find nice/interesting stuff. Check ...Wow you really find nice/interesting stuff. Check out p&G / Coty . That's in 1 weekAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-2080506270244832638.post-1671391001646096522016-09-15T04:08:59.374-05:002016-09-15T04:08:59.374-05:00I'm on the fence about this one due to being p...I'm on the fence about this one due to being petrified that shares not accepted in the tender offer will be immediately dumped, depressing the share price.<br /><br />Another great post by the way. Few (if any) other blogs provide as many potentially actionable ideas.Austinhttps://www.blogger.com/profile/10875256696467285658noreply@blogger.com