A debt offering from video content giant Time Warner will dispense with some current debt, among other things, while taking on new debt, some of which will mature at a pace slower than the average child born on the same day.
The offerings will be on par with those issued in 2010.
The total TW is seeking to raise is $2.1B.
$1.5 billion will come from an underwritten public offering of 3.60% senior notes due 20252025 at a price equal to 99.760% of their face amount.
The remaining $600M will come from an underwritten public offering of 4.85% debentures due 2045 at a price equal to 99.929% of their face amount.
The cash raised will be used for general corporate purposes, including retirement of notes due 2015 and share repurchases.
Moody’s Investors Service noted that the company will remain in the 3.75x leverage ballpark, and said there is no cause to change any of the ratings it has given the company. It’s long term debt rating stands at Baa2.