CBS Corporation is doing some financial reworking


CBS Corporation has sold $500 million of new 10-year bonds and plans on using the proceeds to redeem a like amount of bonds from three issues that come due in 2011 and 2012. The priority, as you might guess, is on buying back the issue that comes due first.

The issue of $500 million in new senior unsecured notes due 2020 priced Tuesday with a coupon of 5.75%. The joint book runneers were Deutsche Bank securities, Morgan Stanley, RBS, Banc of America Securities and UBS Securities.

CBS Corp. is offering to purchase up to $400 million face value of its $950 million outstanding of 6.625% senior notes due May 15, 2011. It is also tendering to buy back two other issues which come due August 15, 2012. The second priority is to buy back its 8.625% debentures, of which $249.62 million are outstanding, and the third priority is to buy back its 5.625% senior notes, of which $590.5 million are outstanding. An early tender premium of $30 per $1000 face value will be paid for those securities which are tendered by April 12th and accepted for redemption. The tender is scheduled to expire on April 26th. Settlement is expected to take place on April 28th.

CBS Corp. has retained Deutsche Bank Securities Inc., Morgan Stanley & Co. Incorporated, RBS Securities Inc., BofA Merrill Lynch, and UBS Investment Bank to serve as dealer managers, Deutsche Bank Trust Company Americas to serve as depositary and D.F. King & Co., Inc. to serve as the information agent for the tender offer.

Moody’s Investors Service has rated the new issue of senior unsecured notes due 2020 as Baa3.
RBR-TVBR observation: We’ve noted before that even as banks keep a tight hold on their lending purses, Wall Street is wide open to media bond sales. CBS is just doing some refinancing, but the move will push out the due date on a half billion of borrowing to 2020.