CBS completes $250 million tender for bonds

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A few more bonds were tendered after the early expiration date for two debt issues being bought back by CBS Corporation. So, CBS has announced the final results and the proration for the lower priority tender.


An additional $300K of the 8.625% debentures due 2012 was tendered by the final deadline of Monday, November 1st, for a total of $55.1 million. Those that missed the early tender deadline don’t get the $30 per $1,000 face value bonus payment, but they will receive the $1,095.96 per $1,000 face value basic payment. All $55.1 million face value, or 26.62 of the total issue which had been outstanding, have been accepted for payment, since that was the top priority of the dual tender.

About $1 million for of the lower priority 5.625% senior notes due 2012 were tendered after the early tender deadline, bringing the total to $205,678,000, or 38.58% of the issue that had been outstanding. After subtracting the #1 priority tender, $194.9 million face value remained for the #2 priority, so the acceptance will be prorated by a proration factor of approximately 94.8%. For those which are accepted, CBS will pay $1,046.03 per $1,000 face value for its 5.625% senior notes due 2012 tendered by November 1st, plus an extra $30 for the early tenders for a total of $1,076.03.

“This was a great outcome for CBS, and another key transaction as we reshape our maturity profile and build upon the strength of our financial position,” said CBS Corporation CFO Joe Ianniello.

All payments are scheduled to be made on Wednesday, November 3rd. CBS raised the cash to cover the tenders, plus more, last month with the sale of $600 million of bonds with lower interest rates and longer maturities.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. Incorporated, Goldman, Sachs & Co., Mitsubishi UFJ Securities (USA), Inc., and Wells Fargo Securities, LLC served as dealer managers, Deutsche Bank Trust Company Americas served as depositary and D.F. King & Co., Inc. served as the information agent for the tender offer.


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