Time Warner Cable Inc. today announced that it has priced a $5 billion underwritten public offering of debt securities, including $1.5 billion aggregate principal amount of 6.20% notes due 2013, $2 billion aggregate principal amount of 6.75% notes due 2018 and $1.5 billion aggregate principal amount of 7.30% 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 Time Warner Cable to be paid just prior to the previously announced separation of Time Warner Cable from its parent company Time Warner Inc. If the separation is not consummated and the special dividend is not paid, Time Warner Cable will use the proceeds from the issuance of the debt securities for general corporate purposes, including repayment of indebtedness. The sale of the debt securities is expected to close on June 19, 2008.
1 comment:
A series of debt can lead to a very difficult cycle of unmanageable finances. We should find ways on reducing debt the cheapest way possible and enjoy financial freedom. Thanks for the article!
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