thanks. QP says yield is 4% which i was hoping isn't correct as i will probably now buy this security which is recommended in the Personal Finance Newsletter I get.
--- In [email protected], "Howard R. Hansen" <[EMAIL PROTECTED]> wrote: > > The following is from an Investors Relations page on BGF's Web Site. > Notice block 3 where it says BGF's EISs are listed under the ticker > symbol. BGF. In other words BGF is not a symbol for a common stock. > It is a symbol for a hybrid security and the yield for BGF is > approximately 8%. It is a good thing you kept digging. Here is the > URL for BGF Foods Web Site. > http://www.bgfoods.com/ <http://www.bgfoods.com/> > > Howard > > > Q. What is the tax treatment of 2005 EIS distributions? > A. Click here for detailed tax treatment information. > <http://media.corporate-ir.net/media_files/irol/17/176473/Tax_Memo.pdf> > > > Q. What are EISs? > A. EISsT, or Enhanced Income SecuritiesT, are units comprised of common > stock and notes. Each EIS of B&G Foods represents one share of Class A > common stock and $7.15 principal amount of 12% senior subordinated notes > due 2016. > > > Q. On which exchange and under what ticker symbol do B&G Foods' EISs > trade? > A. B&G Foods' EISs are listed on the American Stock Exchange under the > ticker symbol "BGF." > > > Q. When did B&G Foods' EISs begin trading on the American Stock Exchange? > A. B&G Foods' EISs began trading on the American Stock Exchange on > October 8, 2004. > > > Q. Who is B&G Foods' transfer agent? > A. The Bank of New York is B&G Foods' transfer agent. > > > Q. When does B&G Foods' fiscal year end? > A. B&G Foods' fiscal year is the fifty-two or fifty-three week period > ending on the Saturday closest to December 31. > > > Q. Does B&G Foods have a reinvestment plan? > A. No, B&G Foods does not have a reinvestment plan. > > > Q. Can an EIS holder split the components of the EISs? > A. > > Yes. Holders of B&G Foods' EISs can, through his or her broker or other > financial institution, separate the EISs into shares of Class A common > stock and senior subordinated notes. However, only the EISs are listed > for trading on the American Stock Exchange. Neither the Class A common > stock nor the senior subordinated notes are separately listed for > trading at this time. > > Similarly, any holder of shares of Class A common stock and senior > subordinated notes can, through his or her broker or other financial > institution, recombine the applicable number of shares of Class A common > stock and principal amount of senior subordinated notes to form EISs. > > Separation and recombination of EISs may involve transaction fees > charged by your broker or financial intermediary. > > > Q. What payments can be expected as a holder of EISs? > A. > > A holder of EISs will be entitled to receive quarterly interest payments > at an annual rate of 12% of the aggregate principal amount of the senior > subordinated notes represented by the EISs held by such holder, or > approximately $0.858 per EIS per year. > > Additionally, holders of EISs may receive quarterly dividend payments on > the shares of Class A common stock represented by the EISs if and to the > extent dividends are declared by the board of directors. Dividend > payments, however, are not mandatory or guaranteed and holders of our > common stock do not have any legal right to receive, or require us to > pay, dividends. Furthermore, our board of directors may, in its sole > discretion, amend or repeal the dividend policy it adopted in connection > with our initial public offering. Our board of directors may at any time > decrease the level of dividends provided for in the dividend policy or > entirely discontinue the payment of dividends. > > > Q. What are the record and payment dates for the interest on the senior > subordinated notes and, if declared by the Board of Directors at its > sole discretion, dividends on the Class A common stock represented by > the EISs? > A. B&G Foods intends to pay interest on the senior subordinated notes > and, if declared by the board of directors at its sole discretion, > dividends on the Class A common stock represented by the EISs on January > 30, April 30, July 30 and October 30 of each year to holders of record > on the preceding December 31, March 31, June 30 and September 30, > respectively. > > > Q. How do EIS holders treat EIS distributions for tax purposes? > A. > > Distributions paid on the shares of Class A common stock represented by > EISs will be taxable to you as dividend income to the extent those > distributions are paid out of our current or accumulated earnings and > profits. If you are an individual, such dividend income will (through > 2008) be subject to tax at long-term capital gains rates provided you > meet certain holding period and other requirements. Distributions on our > shares of Class A common stock not paid out of our current or > accumulated earnings and profits will be treated as a return of capital > to the extent of your basis in your shares of Class A common stock and > any such payments in excess of your basis will be treated as capital > gain from the sale of shares of Class A common stock. Interest income on > the senior subordinated notes will be taxable to you at ordinary income > rates. > > As treatments may vary due to individual status and other > considerations, B&G Foods urges you to consult your own tax advisor for > your individual treatment. > > > Q. Can B&G Foods issue new debt or equity securities or do future > issues have to be in the form of EISs? > A. B&G Foods can issue new debt and/or equity securities. Future issues > do not need to be in the form of EISs. > > > Q. What happens if B&G Foods exercises the call option for the senior > subordinated notes? > A. If B&G Foods exercises the call option for the senior subordinated > notes, the Class A common stock and the senior subordinated notes > included in the EIS will automatically separate. > > > > > investor0329 wrote: > > > > If you look at the last 4 periods that QP has divvy payments for BGF, > > you will notice that the first 2 are around .43 each but that the last > > 2 are only about .21 each. This makes it look like bgf had a divvy cut > > which it did not. For some reason, Yahoo adds them together and > > reports them as around .42 each quarter. For reporting purposes, this > > is as it should be because the investor gets both incomes..and that is > > what matters...in my opinion. It appears that the method of reporting > > changed, perhaps, when QP switched data vendors...but I am guessing at > > this. > > > > --- I > > > > > > > > [Non-text portions of this message have been removed] >
