Alert on Verizon TC XFL

For the first time in my memory, the owner of the call warrant has exercised its right to redeem a Trust Certificate. This has just happened for the TC XFL which contains a senior Verizon bond. My position in this particular issue was acquired at less than $20. This will apparently happen on March 24, 2010 provided the trustee receives the call warrant price. According to the quantumonline site, the call warrant price is the $25 par value plus $.598350693 in accrued interest. QuantumOnline.com Home Page (just enter XFL in the "quick search" space at the right) Actually this makes some sense to me. The call warrant holder could turn around and sell these bonds at a higher price in the bond market. FINRA - Investor Information - Market Data - Bonds - Bond Detail

This is separate and distinct from the issuer calling the bond which has not yet happened. The particular provisions in the prospectus dealing with the call warrant can be found at pages S-8, S-20 to S-21: www.sec.gov

The other TC that I own containing this same Verizon bond, PJL, has not yet been called and is unaffected by the call warrant exercise on XFL. I would add that this might give the PJL call warrant owner an idea to do the same. Verizon can call the bond at anytime.