CBS Radio Sets Prices On Debt Financing


CBS Radio on Friday (Oct. 7) finalized the pricing for its previously announced debt offering, with a slight adjustment to its original plan.

CBS Radio will now offer $400 million in senior unsecured notes due 2024, and enter into a $1.06 billion senior secured term loan maturing in 2023, at an interest rate of LIBOR plus 3.5% with a LIBOR floor of 1%.

CBS initially noted in an Sept. 28 SEC filing that it planned to offer $460 million of senior unsecured notes and to enter into a $1 billion senior secured term loan.

As previously stated by CBS Inc., most of the net proceeds from the net offering will be used by CBS Radio to pay for its spinoff. Funds not used to pay CBS will be applied to general corporate purposes and ongoing cash needs at CBS Radio.

The bond offering is expected to close on Oct. 17. The term loan will commence at the same time, subject to the completion of documentation and customary closing conditions.

In addition to the bond offering, CBS Radio is expected to enter into a $250 million senior secured revolving credit facility maturing in 2021 simultaneously with the term loan. The revolving facility will be made available to CBS Radio for general corporate purposes, with the bonds offered and sold in a private placement to qualified institutional buyers.