Deals
Time Inc. Bondholders Reap Gains After Debt Skyrockets on Deal News
- Meredith Corp. to buy magazine publisher for $1.8 billion cash
- Bonds soar as terms require Time to repay all its debtholders
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Time Inc. bondholders are receiving a gift for the holidays as prices for their debt have skyrocketed on the news that Meredith Corp. agreed to buy the magazine publisher for about $1.8 billion in cash.
Terms of the deal require Time to redeem all of its debt, sending investors racing to buy the company’s bonds in hopes of a near-term payday. The company’s $300 million of 7.5 percent notes due 2025 surged more than 5 cents on the dollar Monday morning to trade above 114 cents, according to Trace bond-price reporting data. That’s the biggest jump ever for the bonds, which were issued in October.