NEW YORK (AP) – Time Warner Cable Inc. said Monday that it sold a new $3 billion round of debt to pay off $1.93 billion in outstanding loans.
The cable operator said the new debt securities will have maturities of 5 and 10 years and are guaranteed by two of its subsidiaries, TW NY Cable Holding Inc. and Time Warner Entertainment Co.
The offering includes $1 billion of 7.5 percent notes due 2014 and $2 billion of 8.25 percent notes due 2019.
The company said the original unsecured loan was used in part to pay a special cash dividend to stockholders on March 12, just before its separation from Time Warner Inc.
The $10.27 per-share dividend totaled $10.86 billion, with $9.25 billion going to the parent company.
On Friday, Time Warner Inc. gave the final terms for its cable spin-off, saying that eligible shareholders would receive 0.08 share of the spun-off division for every Time Warner share they held on record as of 8 p.m. March 12.