CBS Outdoor Americas to launch new credit facility on Tuesday

By Sara Rosenberg

New York, Jan. 3 - CBS Outdoor Americas Inc. is scheduled to hold a bank meeting at 10 a.m. ET on Tuesday to launch a new credit facility, according to a market source.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Wells Fargo Securities LLC are the lead banks on the deal.

The credit facility is being done in connection with the company's initial public offering of common stock.

CBS Outdoor, currently an indirect wholly owned subsidiary of CBS Corp., said in a recent S-11/A filing with the Securities and Exchange Commission that it expects to get about $1.6 billion through a new senior secured term loan and senior notes.

In addition, the company said that it will also get a new revolver that is anticipated to be undrawn at close.

Proceeds from the new debt will be used to make a payment to CBS for the contribution of the entities comprising the Outdoor Americas operating segment, and for general corporate purposes.

The company also said in the filing that it plans to form one or more subsidiary corporations to serve as taxable REIT subsidiaries and will contribute non-real estate and non-U.S. assets to those subsidiary corporations.

CBS Outdoor is a New York-based lessor of advertising space on out-of-home advertising structures and sites.

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