NEW YORK-Telephone and Data Systems Inc., Chicago, has sold a $150 million debt issue of 8.04-percent Trust Originated Preferred Securities, a trademark name assigned to the securities by lead underwriter Merrill Lynch & Co. Inc., New York.
TDS, a cellular, landline, paging and personal communications services carrier, established a Delaware trust, which is the official issuer of the TOPrS. The trust will use proceeds from the sale to buy TDS subordinated debentures, which will free up borrowing capacity for the parent company.
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The debentures don’t mature until 2038, but TDS can extend their final maturity to 2047. At the same time, the company said, “the debentures are redeemable in whole or part on or after March 31, 2003, or, in certain circumstances, upon occurrence of changes in … law which adversely affect the status of TOPrS for federal income tax purposes.”