CBS bond tender hits target


CBS Corporation had been seeking to buy back $250 million of its existing debt in a tender offer for two issues of bonds. Tenders by Monday’s early tender deadline were just over that mark.

After announcing the pricing based on the price of reference US Treasury securities CBS reported that just over 35% of the outstanding bonds had been tendered by the early deadline, which provided for a bonus payment of $30 per $1,000 of face value tendered.

The first priority is the company’s 8.625% debentures due 2012, of which 26.46% of those outstanding were tendered – a total of $54.8 million.

The lower priority is given to the 5.625% senior notes due 2012, of which 38.39% of those outstanding were tendered – a total of $204.7 million.

In total, $259,469,000 of the two issues was tendered by the early tender deadline. CBS had offered to buy back only $250 million in total, so the buyback will be prorated, with as many as possible of the 8.625% debentures accepted before any of the 5.625% notes are purchased. The final tender deadline (without the $30 bonus) is November 1st.