Buying debt that isn't traded

[ragnarisapirate]

This is one of the most round about ideas I have had.

 

I am curious if anyone here has any ideas for buying debt that a company issued about a decade ago. It isn't traded in the market (including OTBB, literally, it doesn't trade, it isn't that it's illiquid). The debt I am seeking to purchase is convertible into the stock of the company, which is something I would buy if it weren't so rarely traded... This seems like an interesting way to sidestep that.

 

I have read the debt prospectus filed with the SEC, but have no clue who owns the debt now (I am guessing that it is a physical note)- I basically just know the firm that sold the debt for the company, but that doesn't do me much good as it seems out of business. Another problem is that the company delisted since the debt was issued....

 

Any suggestions for finding some of the buyers of this debt to potentially buy from?

 

Maybe contact bankers or financial advisors in the area who might have been associated with it?

[Packer16]

If you give me the name I can check to if BB lists its holders

 

Packer

[thepupil]

http://en.wikipedia.org/wiki/Rule_144A

 

Before you go to a lot of effort, make sure they aren't 144a bonds unless you have over 100mm. Ya never know on this board : )

[constructive]

Can you track one of their former bankers down on LinkedIn?

[ragnarisapirate]

The face value of ALL these bonds is within $5mm of UWN's market cap (to reference DTEJD1997's post on here) so no weird securities act rules apply.

 

Packer, you mean Bloomberg?

[gg]

Bloomberg terminal might help but if its a tiny debt issuance from a tiny company, they probably won't show it.

 

Did you try contacting the company directly and asking them who owns the debt? At the very least, their CFO must either send bond holders their interest payments directly or use a service to do so. If the latter, find out the service provider and follow up with them.

[Kraven]

If there is a trustee, you could try to contact them.  They won't tell you who owns it (if they even know),  but might be willing to put you in touch with someone. 

[west]

Maybe I'm naive, but is there any reason why you can't contact IR (if it exists) or someone else at the company that issued the debt and ask them directly?  I mean, keep it causal/not implying intent/"exploring the risks of an equity investment in your company" vs "I want to buy this debt" and getting the answer might be pretty straightforward.