CBS Pad Its Cash Stash With

CBS Corp. has set a plan to offer $800 million in notes for its CBS Outdoor unit in preparation for the spinoff of its outdoor advertising assets later this quarter.

Most of the proceeds from the debt offering will be paid back to CBS Corp., along with an $800 million loan that CBS Outdoor will seek. The payments to CBS will be in consideration for the assets contributed to the spinoff.

CBS plans an IPO for 20% or less of CBS Outdoor later this quarter. Long-term, CBS has said it intends to divest all of its CBS Outdoor stake. In September, CBS cut a deal to sell its  European and Asian outdoor advertising businesses for $225 million.

The spinoff process will plump CBS’ cash coffers, which stood at $226 million at the end of the third quarter. The Eye has been on a tear of buying up its own stock, spending $4 billion on share repurchases since January 2011. It’s likely that some of the cash from the CBS Outdoor transaction would be plowed into more buybacks.

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