QVCGP - Don't Bet On Roulette, But Buy QVC Group Baby Bonds Instead
2025-04-22 17:40:22 ET
Summary
- Low trading prices of QVC Group preferred and common and high yield on QVC debt indicate a high chance of a reorganization of the capital stack by end of 2028.
- A reverse stock split of the common stock and refinancing of the revolving credit facility are likely to take place before end of Q3 2025.
- When that is done, there's a few years to work on debt reduction. It's unlikely that this enables repayment of all debt in the 2029/2030 debt wall accoding to schedule.
- The QVC Group subsidiary baby bonds offer the best expected return against a lower risk than preferred or common stock or holding level debt. They're unsubordinated and secured.
This article is a follow-up on a previous one about Qurate / QVC Group. Some content is revisited, but for those who're new to the topic, it's recommended to read up on the QVC Group securities here or through recent articles of other authors. ...
Don't Bet On Roulette, But Buy QVC Group Baby Bonds Instead