By Andrea Heisinger
New York, March 29 - Time Warner Inc. priced $2 billion of notes (Baa2/BBB/BBB) in two maturities late on Tuesday, a market source said.
The $1 billion of 4.75% 10-year notes sold at 98.943 to yield 4.885% with a spread of Treasuries plus 140 basis points.
A $1 billion tranche of 6.25% 30-year bonds priced at 98.707 to yield 6.347% with a spread of 180 bps over Treasuries.
Both tranches were talked in line with pricing.
BNP Paribas Securities Corp., Merrill Lynch, RBS Securities Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds are being used for general corporate purposes.
The securities are guaranteed by Historic TW Inc, Home Box Office Inc. and Turner Broadcasting System Inc.
Time Warner last tapped the debt market with a $1.9 billion sale in two tranches on Nov. 9, 2010. That sale included a 4.125% bond due 2021 priced at 155 bps over Treasuries and a 5.875% tranche due 2040 priced at 180 bps over Treasuries.
The media and entertainment company is based in New York City.
| Issuer: | Time Warner Inc.
|
| Guarantors: | Historic TW Inc., Home Box Office Inc., Turner Broadcasting System Inc.
|
| Issue: | Notes
|
| Amount: | $2 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Merrill Lynch, RBS Securities Inc., Wells Fargo Securities LLC
|
| Trade date: | March 29
|
| Settlement date: | April 1
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | March 29, 2021
|
| Coupon: | 4.75%
|
| Price: | 98.943
|
| Yield: | 4.885%
|
| Spread: | Treasuries plus 140 bps
|
| Price talk: | 140 bps area
|
|
|
| 30-year bonds
|
| Amount: | $1 billion
|
| Maturity: | March 29, 2041
|
| Coupon: | 6.25%
|
| Price: | 98.707
|
| Yield: | 6.347%
|
| Spread: | Treasuries plus 180 bps
|
| Price talk: | 180 bps area
|
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