Whoa is Me!!–US Cellular and Telephone and Data Systems Make Calls

While I didn’t hold any of the issues called today by Telephone and Data Systems (TDS) and majority owned US Cellular (USM) I hate to see 3 baby bonds go all at once.

As noted by Woody, Greg and mbg earlier today the related companies are calling 3 issues of baby bonds.

TDS is calling the TDJ (7.00%) and TDE (6.875%) issues. TDS had 4 issues outstanding so 2 remain. You can see them here. Call date is 5/12/2021.

The press release is here.

Us Cellular (USM) is calling the UZB (7.25%) baby bond effective on 5/12/2021.

USM has will continue to have 4 baby bonds outstanding. You can see them here.

The press release is here.

All of these issues fell about 1% this morning as they got ahead of themselves and holders will take a small loss of the calls.

I had these issues on my ‘watch list’ for dividend/interest captures, but did not hold any as they were too high in price and we all knew calls were likely coming.

4 thoughts on “Whoa is Me!!–US Cellular and Telephone and Data Systems Make Calls”

  1. Callable 5/12 with only pennies of accrued that’s a steep negative yield to call on TDI. I think the term to break even is some 140 days.

    The flip side is their new U series was a sky high 6 5/8’s whick inked in Feb. So maybe they won’t call. Not worth the risk imo

  2. I am a holder of TDE, TDI, TDJ, UZA. I think TDI would be better to accumulate on weakness, like after ex div. The last time in March 2021 it was suddenly very weak and I managed to build a chunk at around 25.15

  3. Does anyone have an opinion as to whether TDI (6.625% coupon) might be a decent investment option now that TDE and TDJ have been called? Trading at $25.64 and yielding 6.45%. It seems that the proceeds from the sale of TDS-U have been allocated for the redemption of these two issues.

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