iMedia Brands Prices Baby Bond

iMedia Brands (IMBI) has officially priced their previously announced baby bonds issuance.

The issue is priced at 8.50% for 3 million shares (bonds), with another 200,000 bonds available for over allotments. Like many of the lower quality issues recently the issue has ‘bonus’ redemption values–starting at $25.75 and reducing to $25.25 before the final maturity date on 9/30/2026 at $25 (plus accrued interest).

Additionally, it is noted, that if the company does not complete the acquisition of German company 123tv within 180 days they are required to redeem these bonds at $25.50/bond. The closing is expected to take place during the 4th quarter.

Note that the underwriters received a $1/bond underwriting discount. This 4% discount is larger than the typical 3.15% discount and indicates lower confidence in buyer demand.

This issue will trade in the next week or so under ticker IMBIL on the NASDAQ–there is no OTC grey market trading.

The pricing term sheet can be read here.

3 thoughts on “iMedia Brands Prices Baby Bond”

  1. I looked at the CF statements and they seemed pretty stinky. Most of the CF is from selling stock from what I remember. I think not on this one for now, but maybe it fits someone’s risk profile. I would like to see some execution on operations to improve their CF situation.

    1. If the acquisition of 123tv is a moneymaker the bonds could go up. Which means I’d have to research 2 companies I know nothing about.

  2. Desperate to raise money for the acquisition. If it falls through can they afford to redeem the bonds at a $1.5 loss to them? Giving their leverage away.

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