By Aleesia Forni
Virginia Beach, May 28 – Time Warner Inc. priced a $2.5 billion bond offering (Baa2/BBB) in two tranches on Thursday, according to an informed source.
The sale included $1.5 billion of 3.6% 10-year senior notes priced at 99.76 to yield 3.628%, or Treasuries plus 150 basis points.
Price guidance was set in the range of Treasuries plus 150 bps to 155 bps, tightened from initial talk set in the 160 bps area over Treasuries.
There was also $600 million of 4.85% 30-year debentures priced at 99.929 to yield 4.854%, or Treasuries plus 195 bps.
The issue sold at the tight end of guidance set in the range of Treasuries plus 195 bps to 200 bps. Initial talk was in the Treasuries plus 200 bps area.
BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC are the joint bookrunners.
The notes are guaranteed by Historic TW Inc. Home Box Office, Inc. and Turner Broadcasting System, Inc. will guarantee Historic TW’s guarantee of the issue.
Proceeds will be used for general corporate purposes, including share repurchases and the retirement of the company’s outstanding 3.15% notes due 2015.
The media company is based in New York.
| Issuer: | Time Warner Inc.
|
| Guarantor: | Historic TW Inc.
|
| Amount: | $2.1 billion
|
| Bookrunners: | BofA Merrill Lynch, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC
|
| Trade date: | May 28
|
| Settlement date: | July 4
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1.5 billion
|
| Issue: | Senior notes
|
| Maturity: | July 15, 2025
|
| Coupon: | 3.6%
|
| Price: | 99.76
|
| Yield: | 3.628%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 150 bps to 155 bps, tightened from 160 bps area
|
| Make-whole call: | Treasuries plus 25 bps prior to April 15, 2025, then callable at par
|
|
|
| 30-year debentures
|
| Amount: | $600 million
|
| Issue: | Debentures
|
| Maturity: | July 15, 2045
|
| Coupon: | 4.85%
|
| Price: | 99.929
|
| Yield: | 4.854%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 195 bps to 200 bps, tightened from 200 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to Jan. 15, 2045, then callable at par
|
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