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US Cellular to Sell Baby Bonds in ‘Refi’ Transaction

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.

2 thoughts on “US Cellular to Sell Baby Bonds in ‘Refi’ Transaction”

  1. 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

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