TWC’s target for debt sale: $5B
Time Warner Cable (TWC) provided details about its debt offering, including the target amount of financing that it hopes to attract: $5 billion.
The debt securities TWC is offering include $1.5 billion aggregate principal amount of 6.2 percent notes, due 2013; $2 billion aggregate principal amount of 6.75 percent notes, due 2018; and $1.5 billion aggregate principal amount of 7.3 percent debentures, due 2038.
The net proceeds from the issuance of the debt securities are expected to be used to finance, in part, a one-time cash dividend to stockholders of TWC to be paid just prior to the previously announced separation of TWC from its parent company, Time Warner Inc.
TWC has filed a registration statement on Form S-3 (including a prospectus) with the Securities and Exchange Commission (SEC) for this offering.
On Monday, TWC announced that it planned to raise money, in part for a one-time dividend to stockholders when it splits from Time Warner Inc., but the MSO did not specify a target amount it would like to raise, nor did it specify for what other purposes it might use the cash (story here).
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