Twin River (TRWH) announced the final results of their tender offer this week. As expected, holders of 100 shares or more were significantly pro-rated (6.309%) due to the market price moving below that of the lower bound of the modified Dutch auction. Naturally, the purchase price ended up being the lower bound of $29.50.
We initially wrote about this modified Dutch auction on June 18th, when the price was trading around $30.48. We did not purchase TRWH at this time due to the fact that the price was above the lower bound. On July 11th, we purchased 99 shares of TRWH in order to participate in the tender offer. If you had purchased after the publication, you would have realized a 7.55% on your investment, or roughly $200.00 within a month. While this is insignificant for larger portfolios, it can have an impact on smaller portfolios.
We will continue to monitor and write about odd lot tenders of this size, but will only do so via private email rather than in this public forum going forward so we do not spoil the opportunity (see Blue Bird Corporation removing their odd lot priority provision due to a seeking alpha posting). There are risks inherent in these special situations, as we saw with BLBD last year.
Be sure to follow the blog via email to receive updates on these special situations that may be beneficial for smaller portfolios.