Report: CBS Set To Take On $1.5 Billion In Debt Ahead Of CBS Radio IPO
September 26, 2016 at 4:00 AM (PT)
As CBS CORPORATION gets closer to its spinoff of the CBS RADIO division, REUTERS reports the company, "is preparing to take on about $1.5 billion in debt ahead of its initial public offering and use most of the proceeds to pay its parent in cash, according to people familiar with the matter."
The report noted the IPO for the subsidiary was registered in JULY with the SECURITIES AND EXCHANGE COMMISSION. CBS has not released publicly the amount of debt the unit plans to issue. The company did disclose in the filing that it would distribute some proceeds from the debt offering to its parent, while keeping some money for general corporate purposes.
"CBS's debt offering will be split between bonds and loans, and could come before the end of the year," sources told REUTERS. "GOLDMAN SACHS GROUP INC, WELLS FARGO & CO, BANK OF AMERICA CORP, and CREDIT SUISSE GROUP are underwriters on the IPO, while JPMORGAN CHASE & CO is leading the bank financing, and DEUTSCHE BANK AG is running the bond financing, the sources added."