Online and television retailer QVC (owned by Qurate Retail:QRTEA) has priced the previously announced baby bond.
The issue will carry a coupon of 6.25% on 17.4 million shares (plus 2.6 million over allotment shares).
The issue is low investment grade per S&P and Fitch, but speculative per Moodys.
Being investment grade one would have expected a lower coupon, so this means that holders of the QVCD issue (the currently outstanding 6.375% baby bond), which carries a yield to worst around 5.5% would be a bit better off buying the new issue once it trades (sometime in the next week), assuming it trades in the $25 area.
There will be no OTC Grey market trading in this issue, but if one desires an early purchase a call to your broker might allow you to purchase before permanent market trading.
The pricing term sheet can be read here.
For those interested, this is trading today at about $25.20
Took a full position of QVCC at $24.86 via Schwab. Symbol not active yet but fixed income desk could place trade CIA cusip number.
Given how QVCD has traded, I should be able to flip this for a profit.
AXA coming 5 3/8
wow