Vista Land failed to sell prefs oversubscription option

Vista Land [VLL 1.72, up 8.2%; 485% avgVol] [link] sold all 30 million of its Series 2 preferred shares to raise P3 billion but failed to sell any of the 20 million shares that were made available as part of the follow-on offering’s oversubscription option. The shares will list today on the exchange under the tickers VLL2A (7.9892%) and VLL2B (8.4%). The shares are perpetual, cumulative, non-participating, non-voting, redeemable, and non-convertible.

MB BOTTOM-LINE:  I just think it’s interesting that the buying panic for Petron’s [PCOR 2.67, up 3.1%; 57% avgVol] preferred shares was framed as a rush to lock-in high rates before another round of rate cuts, and yet this batch of VLL prefs with much higher rates just couldn’t sell with the same velocity. Either the framing of PCOR’s batch was wrong, or there was something about the VLL batch that failed to generate the same market response. Just saying “LOL Villar” is too easy, in large part because objections like “LOL Villar” can be overcome by aggressive pricing, which leads me to think that they may have set the dividend rate too low to clear the total offer. The market’s sentiment toward cuts has only become more aggressive in the short bit of time since the PCOR prefs listed. Regardless, this deal is done and the shares will begin trading today under their new ticker symbols!

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