CBS Corp. Sets Pricing For CBS Radio Debt Financing
October 7, 2016 at 1:17 PM (PT)
CBS CORP. announced that CBS RADIO has priced an offering of $400 million in aggregate principal amount of 7.25% senior unsecured notes due 2024. CBS RADIO has also established pricing for a $1.06 billion senior secured term loan B facility maturing in 2023 at an interest rate of LIBOR plus 3.50%, with a LIBOR floor of 1.00%. The $1.46 billion debt financing to be effected through the issuance of the notes and the borrowing under the term loan are being made as part of CBS’s plans to separate its radio business.
The offering of the notes is expected to close on OCTOBER 17th, subject to customary conditions. The term loan is expected to be entered into with the issuance of the notes, subject to completion of documentation.
CBS expects that substantially all of the net proceeds from both the notes and the term loan will be distributed to CBS. The remaining net proceeds not used for such distribution will be used by CBS RADIO for general corporate purposes and ongoing cash needs.
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 is expected to be undrawn at the closing date and will be available to CBS RADIO for general corporate purposes.