Angel Oak Mortgage REIT, Inc. 9.75% Senior Notes due 6/1/2030 (AOMD)
Angel Oak Mortgage REIT, Inc. 9.750% Senior Notes due 2030, guaranteed by Angel Oak Mortgage Operating Partnership, redeemable at the issuer's option on or after 06/01/2027 at $25 per note plus accrued and unpaid interest, and maturing 06/01/2030.
Another one 5-year bond issue from a mREIT company. In mid 2024 many mREIT companies started to issue 5 year baby bonds. One of the main reasons for issuing 5-year bonds is higher interest rates in the last few years and an unfriendly environment for refinancing.
These bonds like AOMD are with 5 year maturity but can be called on their second year. This is a nice way for companies to take needed funds and wait for expected interest cuts and better times to refinance. With 1,85mln shares outstanding this is a micro issue and probably won’t be very liquid in future but still a good place to park cash at a nice yield.
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This is the second baby bond issued by the parent company - Angel Oak Mortgage REIT (AOMR). Last July they issued AOMN - Angel Oak Mortgage REIT, Inc. 9.50% Senior Notes due 07/30/2029. Both issues are very similar, the new one AOMR yields a little bit more and trades at lower price than its brother.
We add AOMD at a price of $24.66 with CY 9.90% and YTM of 10.20%. To be fairly priced, compared with the other Angel Oak bond should trade $25.20.