TW prices $ 2 bil debt offering

Time Warner Inc. Wednesday priced its convertible debt offering of $ 2.1 billion (principal amount at maturity) of Liquid Yield Option Notes (LYONs), due 2013.

The notes will be convertible at the option of the holder for shares of common stock of the company at the rate of 7.759 Time Warner shares per $ 1,000 principal amount at maturity.

That is equivalent to an initial conversion price of $ 48 a share of Time Warner common stock. The closing stock price of Time Warner was $ 37.25 a share on June 15.

The gross proceeds of the offering will be about $ 782 million, and will be used together with available cash and equivalents to redeem or otherwise acquire a like principal amount of Time Warner’s 8 3/4% convertible subordinated debentures due 2015.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading