You will be redirected back to your article in seconds

TW lays out Lyons share

As part of the ongoing restructuring of its balance sheet, Time Warner Inc. announced Tuesday that it filed a preliminary prospectus supplement for an offering of $ 2 billion principal amount of Liquid Yield Option Notes (LYONs) due 2013, convertible at the option of the holder for shares of Time Warner common stock.

The company said it anticipates proceeds of about $ 750 million, which it will use — together with available cash and equivalents — to redeem a like principal amount of Time Warner’s 8 3/4% convertible subordinated debentures due 2015.

Underwriter Merrill Lynch has a 30-day option to purchase up to an additional 15% of the LYONs.

The LYONs offering of zero coupon senior notes will be the first takedown by Time Warner under the shelf registration statement it filed in February. Over the past six months, Time Warner has restructured more than $ 10 billion of debt , taking advantage of the prevailing lower interest rates.

The conversion rate will be equivalent to an initial conversion price of $ 48 per share of common stock, slightly higher than the conversion price of the Time Warner 8 3/4% convertible subordinated debentures being redeemed.

The LYONs will be callable by the company at any time after the fifth anniversary of the offering.

Holders will be able to put any LYON to the company at the fifth, 10th, and 15th anniversary of the issue and the company will be able to satisfy its obligation by paying cash or issuing shares of common stock valued at its then market value or in any combination.

More Biz

  • Moksha Fitzgibbons

    Moksha Fitzgibbons Named President of Mobile Video Commerce Platform Ntwrk (EXCLUSIVE)

    Moksha Fitzgibbons has joined Ntwrk as president of the mobile video commerce platform, Variety has learned. He joins the platform having recently served as group chief revenue officer for Valence Media, where he played an integral role in the merger of the Billboard-Hollywood Reporter Media Group with Dick Clark Productions and Media Rights Capital. Ntwrk [...]

  • Neilsons Measurment Problems TV Digital

    Megan Clarken, Key Nielsen Executive, Will Depart Company (EXCLUSIVE)

    Megan Clarken, a Nielsen executive who has been instrumental in the company’s quest to keep tabs on consumers in the many new ways they have to watch TV, is leaving the measurement giant. “After 15 years at Nielsen, Megan Clarken will be leaving at the end of the month to take on a new position [...]

  • Rose McGowan

    Rose McGowan Files Racketeering Suit Against Harvey Weinstein, David Boies, Lisa Bloom

    Rose McGowan filed a racketeering lawsuit on Wednesday against Harvey Weinstein, as well as against his ex-attorneys Lisa Bloom and David Boies and the spy firm Black Cube. The lawsuit alleges that Weinstein conspired with his attorneys to suppress and discredit her allegation that Weinstein raped her at the Sundance Film Festival in 1997. “This [...]

  • Hulu Taps Netflix's Spencer Peeples as

    Hulu Appoints Netflix's Spencer Peeples as Vice President of Film and Awards Marketing

    Hulu has appointed Spencer Peeples, who currently works as director of awards at Netflix, as its vice president of film and awards marketing, marking the first time the Disney-owned streamer has hired a senior exec dedicated to awards. In his new high-profile role, Peeples will lead the strategy and execution of Hulu’s awards campaigns, as [...]

  • UTA

    UTA Taps Ashley Momtaheni as Director of Corporate Communications

    Ashley Momtaheni is jumping ship from Annapurna Pictures to UTA. The agency has tapped Momtaheni as its new director of corporate communications, reporting to its global chief communications officer, Seth Oster. In her new role, Momtaheni will focus primarily on external communications, rounding out UTA’s senior communications team with veteran UTA comms executive Lisa Stein [...]

  • Euphoria HBO

    'It's an Explosion': Inside the Rising Costs of Making a Scripted TV Series

    When Apple TV plus launches on Nov. 1, it will do so with what’s arguably the most expensive new-series lineup in TV history. Among the streamer’s initial offerings are the drama “The Morning Show,” bearing a price tag believed to be more than $15 million an episode, and the dystopian sci-fi series “See,” which is [...]

More From Our Brands

Access exclusive content