@Quanto
As a practical matter, in this context, the word
note is synonymous with the word
bond.
Senior refers to where the notes sit in the capital stack, i.e., whether there are other debt securities that have priority when it comes to making payments of interest or principal. Some notes and bonds are identified as
junior or
subordinated. And some are identified as
secured or
unsecured.
But they are debt instruments. They are not equity securities. In a bankruptcy, they have priority over common stock and preferred stock.
The full quote screen in a brokerage account should show you the maturity date.
Par value refers to the face value, or
principal value, of the bond. Regular corporate bonds typically have a par value of $1,000.00. Baby bonds, or exchange traded bonds, typically have a par value of $25.00.
In the case of RILYM, you can buy these notes today for about $21, and when they mature on 02/28/25, you will receive $25.00--assuming the company does not default. And over the next year, you will receive quarterly interest, and the interest rate is paid
on the par value of $25--not on the price you paid for the note.
The Schwab quote screen labels these notes with the abbreviation
PFD, which implies that they are preferred stock. This is simply not accurate. It is a flaw in Schwab's platform, and Schwab is not the only broker that does this. These things trade
live on an exchange--usually NYSE or NASDAQ--and in many ways they
behave like a preferred stock. But legally they are bonds. They have a maturity date, and on that date, you get paid the principal, like any other bond. And in a bankruptcy, they will behave like bonds, because that is what they are. They are not preferred stock.
