QVC Announces New Baby Bond Issuance

Retailer QVC (owned by Qurate Retail:QRTEA) has announced a new offering of $25/share baby bonds.

The Senior Secured Notes will have a maturity date way out in 2068.

The notes will trade under the ticker QVCC when they begin to trade.

The company has a 6.375% baby bond already outstanding (QVCD) which can be seen here. While we don’t see a new rating today the QVCD notes are low investment grade (BBB-) per S&P and a below investment grade per Moodys Ba2

The preliminary prospectus can be read here.

Ptrader and If you Prefer were on this on instantly.

22 thoughts on “QVC Announces New Baby Bond Issuance”

  1. Forget QVC bonds, go with Public Storage. Long after QVC is defunct, people will still need somewhere to put all the useless stuff they bought at QVC and elsewhere.

  2. To put 2068 in perspective and how much the world may change by then, it is like issuing a bond in 1970 that matures today. in 1970, the following things did not exist.
    1. mobile phones
    2. internet
    3. personal computers
    Considering QVC’s audience skews very old, I am betting that 99% of their customers won’t live long enough to see this bond mature.
    Anybody know what percentage of companies that were listed in 1970 are still listed today?

    1. Ah! The good ole days. No cable, no cell phones, no internet.

      They were the best of times, they were the worst of times.

      1. Richard–in hindsight I enjoyed those days–I could jump in my car and head out to some BLM land in Idaho and hunt–no one could find me (nor would they find me if my car broke down). Now I scan my computers all day and if I leave the house and forget my cell phone it will ring on my applewatch.

    2. Justin, you may be surprised but there are a sub set of bonds issued long ago by companies that no longer exist that still pay from a company that acquired it. Actually a Dutch water bond issued in 1600s still pays interest.
      American and Foreign Power which is a long ago dead utility issued a 100 year bond in 1930. It matures in 2030. And guess who pays the interest on it? Office Depot….Yes Office Depot pays the interest on an old utility bond…Long story but has to do with buy outs and mergers over the years.

      1. Grid – You need to be a contestant on Income Investor Jeopardy….lol

        1. Nomad, I could tell you the interesting history of American and Foreign Power (what a name for a ute, lol) and the long trail that landed into Office Depot’s hands….But what I cant tell you is if this bond will get redeemed or if Office Depot will be around to do it, ha.

          1. Grid, what an incredible history this company has had (a great read)
            I personally wouldn’t touch Office Depot; with about $3 billion of debt, they have shed many losing assets and locations to try and right this ship. The Moody’s bond rating is B1, ROA 3.27%, ROE 1.39% and leveraged free cash flow of a whopping NEGATIVE $-755 million makes this a big NO NO for my portfolio.
            Mark Twain (a very poor investor) said “ The lack of money is the root of all evil.”

  3. QVC still exists? Can’t say I know why…or that I care to find out.

    1. Based on the rating you would think pretty damned low–on the other hand ‘names matter’ (as Grid would say) and some of us are skeptical online/tv retailing.

        1. Doesn’t the new issue make the QVCD more likely to be called? Or does the 2.6% down today already incorporates that risk?

          1. mSquare–the old issue–QVCD is not callable until 9/2023–almost 4 years out so the yield to worst is around 5.4%.

            1. Thanks Tim.

              Bought a small starter $25.70 and may buy more closer to 25.63 low of today or more likely see what it does tomorrow and add if still in mid-$25s but at lower volume than today’s 225k+

          2. QVCD is call protected until 9/13/2023. YTC is 5.6%. With Div Ex date next week, actual YTC could be slightly better than 5.6%. Not bad. I believe that this one still makes sense probably because it is not QDI or the word “retail” probably connote negative sentiment. Double rated IG. This is good for comparing IPO (which I almost always paid too much being impatient).

      1. I thought, senior secured? By what, cameras or something?

        From the prospectus:

        “The sole collateral is a first-priority security interest on all shares of the capital stock of the Issuer.”

        When is a bond not a bond…

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