Chicken Soup for the Soul Finally Prices Baby Bonds

Entertainment content producer Chicken Soup for the Soul (CSSE) has finally priced the previously announced baby bonds.

The issue prices at 9.50%. They will be selling 840,000 shares with another 126,000 for over allotment.

The maturity date is 7/31/2025 with an optional redemption starting 7/31/2022.

It is noted that the underwriting discount for this issue is 5% which is above the more normal 3.15% which may indicate the underwriters confidence (or lack thereof) of selling this issue near $25

The pricing term sheet can be found here.

14 thoughts on “Chicken Soup for the Soul Finally Prices Baby Bonds”

  1. Well, I finally found these guys. Due to stay at home, was looking for some more free TV content. I brought some up on the free Crackle streaming app. Up popped Chicken Soup for the Soul after playing some old TV shows.

    Does it change my mind on investing in them?

    No, just commenting

    1. COS COB, Conn., July 17, 2020 (GLOBE NEWSWIRE) — Chicken Soup for the Soul Entertainment Inc. (CSSE) (the “Company”), one of the largest operators of streaming advertising-supported video-on-demand (AVOD) networks, today announced the closing of its underwritten public offering of an aggregate principal amount of $21 million 9.5% Notes due 2025 (“Notes”). The Notes are expected to begin trading on Nasdaq under the symbol “CSSEN” within 30 days of the original issue date. The Notes will not be convertible into or exchangeable for any of the Company’s other securities.

    2. Quantum shows the Chicken Soup baby bond symbol as CSSEN…I believe the N stands for noodle.

  2. The underwriting discount’s large percentage is probably more a function of the small size of the issue than the “quality” even though the quality seems challenged and the issuer is obscure. How does a broker suggest this investment with a straight face.? 😳 I wonder if the underwriter is relying on the issuer’s PC credentials to smoke up a weak investment?

    1. It a world with interest rates in the toilet, they will always be able to find some sucker institutional investor to buy it…

    1. An Egan-Jones rating is worth less than nothing in my view. EJ would give a toxic waste dump an IG rating. It’s s stain.

        1. I admit to liking 10% coupons but this is a hobby investment. I’d rather spend the money on elocution lessons for Joe Biden.

    1. mbg–of course you are correct–changed. I only proofread it 5 times–guess I need 6 times.

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