CBS Gets Takers for $800B in Debt Buyback - Broadcasting & Cable

CBS Gets Takers for $800B in Debt Buyback

Move is effort to get better rate on long-term notes
Author:
Publish date:

CBS says it wound up buying back a little more than a third of the debt it had targeted in tender offers of cash for four tranches of notes.

The offer expired at 5 p.m. Monday (Aug. 18), and CBS said Tuesday it had gotten takers for $802,510,000, or 37% of the $2,126,453,000 worth of notes it wanted to buy back.

Essentially, CBS was looking to get a better rate than the 7%-8% it was having to pay on the debt, like refinancing a mortgage to lower the monthly payments.

But a lot of those debt holders were liking that rate, with notes not due until 2019, 2023 and 2030.

CBS was willing to pay a $368.11 premium on each $1,000 of debt to get the 2030 notes back and got a third of them for a total of $423,187,000 of those tendered.

Related