Based on the price of reference US Treasury securities, CBS Corporation announced the price it is offering for the two bond issues it is seeking to buy back from investors. The early tender period, with the maximum pricing, was to expire at 5:00 pm ET on Monday (10/18).
The yield on the Treasuries used to calculate each of the tenders was 0.347%. Thus, CBS will pay $1,095.96 per $1,000 face value for its 8.625% debentures due 2012 tendered by November 1st, but an extra $30 for those tendered by the Monday deadline, for a total of $1,125.96. CBS will pay $1,046.03 per $1,000 face value for its 5.625% senior notes due 2012 tendered by November 1st, but an extra $30 for the early tenders for a total of $1,076.03.
The first priority of the tender is for the 8.625% debentures, of which just under $207 million are outstanding. The remainder of the $250 million buyback will go to purchase the 5.625% senior notes, of which over $533 million are outstanding.