Telephone and Data Systems Prices New Perpetual Preferred

Telephone and Data Systems (TDS) has announced the pricing on their previously announced new preferred stock issue.

The issue prices with a coupon of 6.0%.

The issue is rated below investment grade at Ba3 from Moody’s, B from Standard and Poor’s and BB- from Fitch.

This is a massive issue of 24 million shares and another 3.6 million available for over allotment for potential gross proceeds of $690 million. Some of the proceeds will be used to redeem the company’s 6.625% senior notes (TDI) of which approximately 4.4 million shares are outstanding.

The issue will trade immediately on the OTC grey market under ticker TDSLV. Look for this ticker to change in 1-2 days–likely to TDSLP.

The pricing term sheet can be found here.

12 thoughts on “Telephone and Data Systems Prices New Perpetual Preferred”

  1. On Tues.8/10..bought 1000 shrs of TDSLV with Schwab at 25.00…….On Thursday, when temp ticker changed to TDSLL…..Schwab returned my $25000 and states TDSLV was “suspended” and then reissued with new temp ticker symbol TDSLL..My purchase sits in limbo….Strange! .Anyone buy TDSLV with Schwab on Tues/Wednesday?

    This 2 day temp ticker symbol change seems to have created confusion at Schwab…

    1. Please, Schwab, please leave TDA alone for many years to come… Hearing stories like this tells me I dread the day when they consolidate.. Quite honestly, I’m already seeing Schwabism creeping into TDA responses on some recent small problems I’ve had..

    2. Issue resolved at Schwab minus the aggravation…..If anyone with a similar issueneeds a contact person @ Schwab……please let me know

  2. Surprised that not bid up and trading just below $25. Available to trade at Vanguard, ETrade and Schwab. Fidelity rejected me placing order before open so lost my trade!

  3. This poses an interesting toss up between the U and this series if you have a view towards higher rates in the future. Granted your YTC is higher with the new issue right now, but your convexity exposure will be lower with the higher coupon issue.

  4. After TDS U performed so well(I think it hit 27.8) no wonder this one was so popular. I ‘know people’ who hit it pretty hard!

  5. Barely above the common, co. discloses room for issue of Senior Stock higher in pecking order. B by S&P. Too scary for me, and unnecessary – already into USM and other TDS’s.

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