The company says the cash will go toward the catch-all “general corporate purposes” and will come from two transactions. Time Warner will raise $500M from notes due in 2023 that pay 4.05% in interest, and another $500M from debentures due in 2043 that pay 5.35%. Moody’s Investors Service rates them Baa2, indicating that they’re safe with just a moderate degree of risk. “We believe that Time Warner is taking advantage of the low but rising interest rate environment,” Moody’s says. “The company has no public debt maturities in 2014 and $1 billion maturing in 2015.” Fitch Ratings offers a similar rating, BBB+, saying that the borrowing “enables Time Warner to moderately de-risk its business profile while increasing strategic focus on its Networks, and Film and TV Entertainment segments.” Time Warner had about $17.6B in net debt at the end of September.
Time Warner Plans $1B Debt Sale
What's Hot on Deadline
Paramount To Turn Key & Peele's 'Substitute Teacher' Into Feature; Keegan-Michael Key And Jordan Peele To Star
Latest Business News
- Technicolor Says Layoffs Will Affect Only Its Media Services Departments
- British Election Campaign Kicks Off With First Televised Leaders Debate
- Richard Rosenblatt Launches Whipclip Video App; Will 3rd Time Also Be A Charm?
- Channel 4 Acquires Stake In Factual Indie Producer Renowned Films
- Technicolor Closing Offices in Burbank And London
- WME Signs ‘Krisha’ Filmmaker Trey Edward Shults