Seeking Alpha

New Media files $100M stock shelf

  • One day ahead of its spinoff from Newcastle Investment (NCT), New Media (NEWM) files a common stock shelf offering for up to $100M worth of shares.
  • SEC form S-1
  • In when-issued trading, NEWM fell 2.6% to $13.80 yesterday, but is up from the initial price of $11.
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Comments (3)
  • rmtolchin1
    , contributor
    Comment (1) | Send Message
     
    How is this going to affect the proposed 20 % dividend ?
    12 Feb 2014, 09:04 AM Reply Like
  • taxman100
    , contributor
    Comments (320) | Send Message
     
    What they said is their cash yield is 20% on equity. That is not the same as 20% dividend. It is hard to say what that would lead to for an actual dividend payment.
    12 Feb 2014, 09:19 AM Reply Like
  • James_B
    , contributor
    Comments (160) | Send Message
     
    From what I understand, a stock shelf is the amount of stock that is permitted to be issued at a later date, but the company has not issued any more shares.

     

    Looking at the investor presentation, the company provides a range for what the dividend will be but I don't think they will end up paying a 20% dividend. I would imagine it is high, but not 20%.
    12 Feb 2014, 09:35 AM Reply Like
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