CBS Radio has priced senior notes and a term loan as part of the $1.46 billion in debt it expects in connection with its spinoff from CBS Corp: It will offer $400 million in aggregate principal amount of 7.25 percent senior unsecured notes due 2024. Additionally, CBS Radio has set pricing for a $1.06 billion senior secured term loan B facility maturing in 2023 at an interest rate of LIBOR plus 3.5%, with a LIBOR floor of 1 percent.
The note offering is expected to close on October 17, while the term loan is expected to be entered into at the same time, all subject to documentation and customary closing conditions. CBS expects that “substantially all” of the proceeds will be distributed to CBS itself, while the rest goes to CBS Radio for “general corporate purposes and ongoing cash needs.”
CBS also announced that CBS Radio is expected to enter into a $250 million senior secured revolving credit facility maturing in 2021 simultaneously with the $1.06 billion term loan. The credit facility, CBS said, “is expected to be undrawn at the closing date and will be available to CBS Radio for general corporate purposes.”