After Citigroup exchanged preferreds July 24, 2009, why are those stocks still being traded?
Look at stocks CPRM, CPRO, & CPRQ; these were among those that Citigroup announced would cease paying interest and be de-listed after the July 24th conversion date. I owned them and tendered my shares and received a chunk of Citigroup common in exchange. But these stocks are still listed, still have value in the teens, and are still being traded. Why is this? Why aren’t they down as “penny stocks” and be essentially worthless now? Do they actually still pay interest?
You are missing the fine print: the shares continue to “exist” as legitimate preferred shares (dividends suspended, accumulating or not depending upon the specifics of the initial preferred issue) until expiration payable at par…with a few exceptions at CitiGroup’s discretion.
In the very back of the exchange offer you will see the details. For example:
CUSIP 172967556 8.500% Non-Cumulative Preferred Stock,Series F
Redemption Date June 15, 2013; Redemption Price: $ 25
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