News
NEW YORK (AP) – Time Warner Cable Inc., the nation's second-largest cable operator, announced a $2 billion public debt offering on Thursday to help finance a special dividend to be paid just before the company separates from its parent, Time Warner Inc.
The split is expected to take place by early 2009.
The company said $1.25 billion in notes at 8 3/4 percent would be due in 2019, and $750 million at 8 1/4 percent would be due 2014. The sale of the securities is expected to close by Tuesday.
If the separation is not completed, the company said it will use the proceeds for general corporate purposes, including debt repayment.
The debt securities will be issued by Time Warner Cable and guaranteed by its TW NY Cable Holding and Time Warner Entertainment units.
Citigroup Global Markets, Deutsche Bank Securities, Goldman Sachs and Mizuho Securities USA are underwriting the offering.
Time Warner Cable shares rose 59 cents, or 3.4 percent, to close at $17.98 Thursday, after touching an all-time low of $16.67 earlier in the session. The stock has traded between $16.67 and $31.56 during the past 52 weeks.
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