Turner Broadcasting System announced Wednesday the pricing of its latest debt issue, and the numbers indicate that Wall Street thinks buying TBS debt now is a safe bet.
TBS’ $ 300 million issue of senior notes, due July 1, 2013, was priced as 8 3 /8 at 99.10 to yield 8.47%.
The spread on the noncallable issue is just 1.77 percentage points above the Treasury 20-year bond yield — a very narrow spread for a non-investment-grade bond. The issue was rated Ba2 by Moody’s Investors Service Inc. and BB+ by Standard & Poor’s Corp.
The issue is part of Turner’s recent $ 1.1 billion shelf registration. Proceeds from the offering will be used to redeem $ 288 million of the company’s outstanding convertible subordinated notes due 2004.
The selling concession is $ 10 and delivery is scheduled for July 8.