LOS ANGELES — After the Closing Bell on Wall Street, CBS went looking for some cash—in a nearly billion-dollar way—to engage in a debt swap that, when all the calculations are made, gives the company a more favorable consolidated rate of interest.
In an announcement made late Monday afternoon, Pacific Time, CBS Corp. announced the pricing of a debt offering of $400 million of 2.5% senior notes due 2023, and $500 million of 3.375% senior notes due 2028.
The sale of the senior notes is expected to close quickly—in one week, to be precise.
The July 3 closing date is subject to customary conditions.
After deducting fees and expenses related to this offering, CBS intends to use the net proceeds to repay at maturity its $400 million outstanding aggregate principal amount of 1.95% senior notes due July 1, and to redeem all of its $300 million outstanding aggregate principal amount of 4.625% senior notes due May 15, 2018. The redemption date is July 26.
The remaining net proceeds, if any, will be used for general corporate purposes including, among other things, the repayment of short-term borrowings, including commercial paper.
The joint book managers for the offering are Credit Suisse Securities; Deutsche Bank Securities; Merrill Lynch; Pierce, Fenner & Smith Inc.; and Wells Fargo Securities.