Telephone and Data Systems: Pending Spectrum Sales Set To Drive Further Deleveraging
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Pacifica Yield13.39K FollowersFollow5ShareSavePlay(7min)CommentsSummaryTelephone and Data Systems is set to generate $2.2 billion from pending sales of its spectrum assets through 2026.This should support a $500 million share buyback program and further bolster a balance sheet that had net cash of $105 million at the end of its recent third quarter.The Series UU preferreds offer a current yield of 7.76% and are trading at a 15% discount to their liquidation value. These should recover if long-term Treasury rates dip.
Crystal Bolin Photography/iStock via Getty Images While Telephone and Data Systems' (TDS) preferreds are trading at a double-digit discount to their liquidation value per share and are paying a nearly 8% current yield, they face near-term headwinds from long-term TreasuryThis article was written byPacifica Yield13.39K FollowersFollowThe equity market is a powerful mechanism as daily fluctuations in price get aggregated to incredible wealth creation or destruction over the long term. Pacifica Yield aims to pursue long-term wealth creation with a focus on undervalued yet high-growth companies, high-dividend tickers, REITs, and green energy firms.Analyst’s Disclosure:I/we have a beneficial long position in the shares of UZE either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You