Chicken Soup For The Soul Entertainment: This 9.75% Preferred Stock Has Begun Trading On The Nasdaq

Introduction

In this article, we want to shed light on a new Preferred Stock issued by Chicken Soup For The Soul Entertainment (CSSE).

Our goal is purely to inform you about the product while refraining ourselves from an investment recommendation. Even though the product may not be of interest to us and our financial objectives, it definitely is worth taking a look at.

The New Issue

Before we submerge into our brief analysis, here is a link to the 424B3 Filing by Chicken Soup For The Soul Entertainment, Inc – the prospectus.

Source: SEC.gov

For a total of 600,000 shares issued, the total gross proceeds to the company are $15M. You can find some relevant information about the new preferred stock in the table below:

Source: Author’s spreadsheet

Chicken Soup for the Soul Entertainment 9.75% Series A Cumulative Redeemable Perpetual Preferred Stock (CSSEP) pays a qualified fixed dividend at a rate of 9.75%. The new preferred stock carries no Standard & Poor’s rating but is expected to be rated “BBB-” by Egan-Jones Ratings Company, and is callable as of 06/27/2023. Currently, the new issue trades at its par value at a price of $25.00 and has a 9.75% Current Yield and Yield-to-Call.

Here is how the stock’s YTC curve looks like right now:

Source: Author’s spreadsheet

The Company

Chicken Soup for the Soul Entertainment, Inc., incorporated on May 4, 2016, is a provider of entertaining video content. The Company develops and produces exciting and entertaining, video content packaged for distribution through television, online and mobile channels, including: The Sip, Web series run on APlus.com, and A Plus videos. The Company’s video content projects include Chicken Soup for the Soul’s Hidden Heroes (Hidden Heroes), Chicken Soup for the Soul’s Project Dad, Paycation Homes, Hilton Grand Vacation Sips,

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