(adds pricing of notes, updates stock quote)
CBS Corp. (CBS) unveiled a tender offer for as much as $250
million of debt that matures in 2012.
The broadcasting company also priced a total of $600 million in
senior notes, half due in 2021 and half in 2040, to pay for the
tender offer as well as to redeem notes due in 2051. The notes due
in 2021 have a 4.3% coupon and the 30-year issue has a 5.9%
coupon.
A host of companies are announcing the sale of new debt to
refinance other borrowings, looking to take advantage of the
historically low interest-rate environment.
CBS is offering to repurchase two series of 2012 debt. Its
8.625% debentures, with principal outstanding of $207 million, will
receive first priority. Any of the $250 million left over will go
toward the $533.1 million of 5.625% notes. Pricing will be based on
the U.S. Treasury prices as of 2 p.m. EDT on Oct. 18.
The company in August reported that second-quarter profit soared
on an 8.6% jump in advertising revenue and as margins benefited
from cost cutting. CBS, which relies on advertising for nearly
two-thirds of its total revenue, has benefited from a rebound
there, and in May reported strong advance sales for the fall
network television season.
Shares recently traded at $16.20, down 1.1%, amid a broad market
decline. The stock is up 41% the past year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com