Citadel trading sparse but solid


There has been very little trading in the stock and warrants of Citadel Broadcasting since RBR-TVBR first reported that pink-sheet trading had begun. Nonetheless, the trading price has been pretty firm despite the thin trading activity.

There has yet to be a single trade recorded that we can find for Citadel’s Class A stock, which is its regular voting stock following the company’s emergence from Chapter 11 bankruptcy reorganization. But then, only three million Class A shares were issued when Citadel exited Chapter 11 and the restricted shares more recently issued to top managers have not yet vested. The Class B shares with limited voting rights have exactly the same theoretical value, as do the warrants which can be converted into Class A shares. 25.4 million warrants were issued to creditors who chose to take them, rather than stock. 16.6 million shares of Class B stock were issued. The trading to date has been in those two securities.

As previously reported, the first trades of the warrants ranged from $24 to $28. That high end was right in line with the theoretical value that RBR-TVBR had calculated from the valuation used by the bankruptcy court. Subsequent trading slipped a buck or so, but the thin trading has always remained in the 20s.

The stock price has recently moved up slightly from the $22.875 per share that Citadel used to value the restricted stock grants made to CEO Farid Suleman and other top managers last month. The most recent trade reported for the Class B stock was last Thursday (9/9) at $24.50 and there was a trade of warrants the previous day (9/8) at the same price of $24.50.

UPDATE: 100 warrants traded Monday (9/13) at $27.00.

RBR-TVBR observation: If you’re wondering why RBR-TVBR hasn’t added Citadel to its daily stock charts, it is because of the very thin trading. Most days the trading volume is zero. When trading picks up to where there is trading on a daily basis we will add the stock to our chart.