The following is from an Investors Relations page on BGF's Web Site. Notice block 3 where it says BGF's EISs are listed under the ticker symbol. BGF. In other words BGF is not a symbol for a common stock. It is a symbol for a hybrid security and the yield for BGF is approximately 8%. It is a good thing you kept digging. Here is the URL for BGF Foods Web Site. http://www.bgfoods.com/ <http://www.bgfoods.com/>
Howard Q. What is the tax treatment of 2005 EIS distributions? A. Click here for detailed tax treatment information. <http://media.corporate-ir.net/media_files/irol/17/176473/Tax_Memo.pdf> Q. What are EISs? A. EISsT, or Enhanced Income SecuritiesT, are units comprised of common stock and notes. Each EIS of B&G Foods represents one share of Class A common stock and $7.15 principal amount of 12% senior subordinated notes due 2016. Q. On which exchange and under what ticker symbol do B&G Foods' EISs trade? A. B&G Foods' EISs are listed on the American Stock Exchange under the ticker symbol "BGF." Q. When did B&G Foods' EISs begin trading on the American Stock Exchange? A. B&G Foods' EISs began trading on the American Stock Exchange on October 8, 2004. Q. Who is B&G Foods' transfer agent? A. The Bank of New York is B&G Foods' transfer agent. Q. When does B&G Foods' fiscal year end? A. B&G Foods' fiscal year is the fifty-two or fifty-three week period ending on the Saturday closest to December 31. Q. Does B&G Foods have a reinvestment plan? A. No, B&G Foods does not have a reinvestment plan. Q. Can an EIS holder split the components of the EISs? A. Yes. Holders of B&G Foods' EISs can, through his or her broker or other financial institution, separate the EISs into shares of Class A common stock and senior subordinated notes. However, only the EISs are listed for trading on the American Stock Exchange. Neither the Class A common stock nor the senior subordinated notes are separately listed for trading at this time. Similarly, any holder of shares of Class A common stock and senior subordinated notes can, through his or her broker or other financial institution, recombine the applicable number of shares of Class A common stock and principal amount of senior subordinated notes to form EISs. Separation and recombination of EISs may involve transaction fees charged by your broker or financial intermediary. Q. What payments can be expected as a holder of EISs? A. A holder of EISs will be entitled to receive quarterly interest payments at an annual rate of 12% of the aggregate principal amount of the senior subordinated notes represented by the EISs held by such holder, or approximately $0.858 per EIS per year. Additionally, holders of EISs may receive quarterly dividend payments on the shares of Class A common stock represented by the EISs if and to the extent dividends are declared by the board of directors. Dividend payments, however, are not mandatory or guaranteed and holders of our common stock do not have any legal right to receive, or require us to pay, dividends. Furthermore, our board of directors may, in its sole discretion, amend or repeal the dividend policy it adopted in connection with our initial public offering. Our board of directors may at any time decrease the level of dividends provided for in the dividend policy or entirely discontinue the payment of dividends. Q. What are the record and payment dates for the interest on the senior subordinated notes and, if declared by the Board of Directors at its sole discretion, dividends on the Class A common stock represented by the EISs? A. B&G Foods intends to pay interest on the senior subordinated notes and, if declared by the board of directors at its sole discretion, dividends on the Class A common stock represented by the EISs on January 30, April 30, July 30 and October 30 of each year to holders of record on the preceding December 31, March 31, June 30 and September 30, respectively. Q. How do EIS holders treat EIS distributions for tax purposes? A. Distributions paid on the shares of Class A common stock represented by EISs will be taxable to you as dividend income to the extent those distributions are paid out of our current or accumulated earnings and profits. If you are an individual, such dividend income will (through 2008) be subject to tax at long-term capital gains rates provided you meet certain holding period and other requirements. Distributions on our shares of Class A common stock not paid out of our current or accumulated earnings and profits will be treated as a return of capital to the extent of your basis in your shares of Class A common stock and any such payments in excess of your basis will be treated as capital gain from the sale of shares of Class A common stock. Interest income on the senior subordinated notes will be taxable to you at ordinary income rates. As treatments may vary due to individual status and other considerations, B&G Foods urges you to consult your own tax advisor for your individual treatment. Q. Can B&G Foods issue new debt or equity securities or do future issues have to be in the form of EISs? A. B&G Foods can issue new debt and/or equity securities. Future issues do not need to be in the form of EISs. Q. What happens if B&G Foods exercises the call option for the senior subordinated notes? A. If B&G Foods exercises the call option for the senior subordinated notes, the Class A common stock and the senior subordinated notes included in the EIS will automatically separate. investor0329 wrote: > > If you look at the last 4 periods that QP has divvy payments for BGF, > you will notice that the first 2 are around .43 each but that the last > 2 are only about .21 each. This makes it look like bgf had a divvy cut > which it did not. For some reason, Yahoo adds them together and > reports them as around .42 each quarter. For reporting purposes, this > is as it should be because the investor gets both incomes..and that is > what matters...in my opinion. It appears that the method of reporting > changed, perhaps, when QP switched data vendors...but I am guessing at > this. > > --- I > > [Non-text portions of this message have been removed]
