Time Warner selling debt to finance dividend
Time Warner Cable (TWC) plans to raise money it says it will use – in part – to pay a one-time dividend to stockholders when it splits from parent Time Warner Inc.
TWC has filed a shelf registration statement with the Securities and Exchange Commission (SEC) detailing a plan to sell debt securities to raise the money.
In the documents filed with the SEC, TWC did not specify a target amount it would like to raise, nor did it specify for what other purposes it might use the cash.
The company did say, however, that if the separation is not consummated and the special dividend is not paid, it will use the proceeds from the issuance of the debt securities for general corporate purposes, including repayment of indebtedness.
The sale will be an underwritten public offering of debt securities with maturities ranging from five to 30 years.
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