US Cellular (USM) has announced a new issue of baby bonds.
The intent is to redeem the UZC 7.25% baby bonds. Given the recent financing actions of USM and majority owner Telephone and Data Sytems (TDS) this should not be a surprise to anyone–although shares closed at $25.68 last Friday.
The new issue will have a permanent ticker of UZF when it is priced and begins trading in a week or so. The issue is not investment grade.
The preliminary prospectus can be read here.
Bob-in-DE was on top of this new issue.
EarlyBird chimed in with ‘yield talk’ in the 5.50 to 5.625% area.
It seems that UZA is more upset about this call than UZC.
Gridbird wrote months ago that UZB and UZC were in the cross hairs of USM redemptions with the 7.25% coupons. He was spot on. Good job Gridbird!
– Dave