For a company the size of Time Warner Inc. a public offering of $1 billion in debt is not much more than a trip to an ATM. The company says the proceeds will be used “for general corporate purposes, which may include stock repurchases.”
The $1 billion offering will be split between senior notes due January 2022 and senior debentures due October 2041.
The notes and debentures will be issued by Time Warner and guaranteed by Historic TW Inc. In addition, Home Box Office, Inc. and Turner Broadcasting System, Inc. will guarantee the obligations of Historic TW Inc. under its guarantee. The guarantee structure for the notes and debentures will be the same as the structure for the notes and debentures Time Warner issued in April 2011 and in 2010.
The offering is being managed by Citigroup, Goldman Sachs, JP Morgan and UBS.