JNM

Why Isn't Maguire Properties Buying Back Its Preferred Shares?

The Company is amidst a monumental liquidity crisis (hence dividend suspension) and they are simply trying to keep their head over water. While I'm sure they would love to repurchase their preferred shares at ~$2.25 p/s, the annual savings of nearly $20M needs to be reserved for the property portfolio. They have refinancings on the horizon and the LTVs have elevated to unsatisfactory levels for the lenders. In some cases, the cash will need to be deployed towards these troubled properties to lower the leverage.

Aside from that, the Company might be precluded from buying back either common or preferred shares by its bank facility.