Catering IPO brings new hybrid product to US market

Author: | Published: 1 Jan 2004

A catering company introduced the US financial markets to a new product last month when it launched an innovative combined debt-equity offering.

Volume Services America Holdings (VSA), whose concession stands can be seen at conference halls and sporting arenas such as Yankee Stadium, caused a stir when it became the first company in the US to issue income depositary securities (IDSs).

Investors buying IDSs acquire both a slice of debt and a portion of equity at the same time. The two can be kept as a...