By Cristal Cody
Tupelo, Miss., Nov. 13 – CBS Corp. priced a $900 million two-tranche offering of senior notes (BBB/BBB) in a Rule 144A private offering on Monday, according to a press release and a market source.
The company sold $400 million of 2.9% notes due June 1, 2023 at a Treasuries plus 100 basis points spread.
CBS priced $500 million of 3.7% notes due June 1, 2028 with a spread of 150 bps over Treasuries.
Both tranches priced on the tight side of guidance.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets, LLC were the bookrunners.
Proceeds will be used to redeem all of the company’s $500 million outstanding of 5.75% senior notes due April 15, 2020. The remainder will be used for general corporate purposes, including discretionary contributions to CBS qualified pension plans and repaying short-term borrowings, including commercial paper.
CBS is a broadcasting company based in New York.
| Issuer: | CBS Corp.
|
| Amount: | $900 million
|
| Description: | Senior notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets, LLC
|
| Trade date: | Nov. 13
|
| Settlement date: | Nov. 16
|
| Ratings: | S&P: BBB
|
| Fitch: BBB
|
| Distribution: | Rule 144A, Regulation S
|
|
|
| Six-year notes
|
| Amount: | $400 million
|
| Maturity: | June 1, 2023
|
| Coupon: | 2.9%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area
|
|
|
| 10.5-year notes
|
| Amount: | $500 million
|
| Maturity: | June 1, 2028
|
| Coupon: | 3.7%
|
| Spread: | Treasuries plus 150 bps
|
| Price guidance: | Treasuries plus 155 bps area
|
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