US Cellular Prices Baby Bonds

Midwest cellular company US Cellular (USM) has priced their previously announced baby bond issue.

The issue priced at 6.25% for 20 million shares (bonds).

The company has 3 issues currently outstanding and 2 of 3 are currently callable with coupons of 6.95% and 7.25%–they may call some of these issues with proceeds of this issue. Yesterday both issues traded lower with the call in mind. You can see these issues here.

The issue is rated a couple notches below investment grade.

There will be no OTC grey market trading in the issue, but if you want it badly call your brokers bond desk with the CUSIP.

The pricing term sheet can be read here.

14 thoughts on “US Cellular Prices Baby Bonds”

    1. Bear, I didnt buy this but I own a slug of TDE. And this pricing action is just putting one more nail in the TDE and TDJ coffins.

    1. What kind of news are you looking for? They priced, they’ll be listed on nyse under symbol UZD shortly

    2. Joel A–they will eventually hit the market–just not yet–just keep watching you brokers quote system.

  1. TDA yielding 5.85% looks way overpriced in comparison to this. TDA and UZD have the same S&P rating but Moody’s rates UZD one notch higher. Regardless of whether it should be a full notch higher, there’s no doubt UZD is a better credit than TDA.

    1. I am still thinking about this one. I actually have quite a bit of TDE that is pretty anchored around par. Since they are pretty much in bed with each other, Im not sure if I should go here. Maybe the wise thing could be to take my profits and sell TDE to buy new issue. But dang, I am tired of trading down on yield.

          1. I have been reading for months now and can’t tell everybody enough how much I appreciate this site. This might be old news to some, I was able to buy 600 UZD at 25.35 ( Wells Fargo temp ticker UZCPQ). I hope this may help others.

  2. I hit this one pretty hard. Held up at onset confusing them with CenturyLink. I’d beed in and out of uzb and uzc when their ytc went negative….They are a good representation of how neg ytc tend to hold up better in sell offs. Pull up their charts and they look pretty stable relatively considering….. B and C hit a low of 13 in march. Many good pfds hit 10….

    I am seeing a gray mrkt symbol but it’s not coming up….

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