CBS begins one-week tender offer for $2.13 billion of four note series

By Susanna Moon

Chicago, Aug. 11 – CBS Corp. said it began a tender offer for four series of notes that will run until 5 p.m. ET on Aug. 18.

The company is tendering for its

• $600 million of 8.875% senior notes due 2019;

• $224,268,000 of 7.875% debentures due 2023;

• $1.25 billion 7.875% senior debentures due 2030; and

• $52,185,000 of 7.125% senior notes due 2023 issued by CBS Broadcasting Inc., a wholly owned subsidiary.

Pricing for each $1,000 principal amount will be set at 2 p.m. ET on Aug. 18 using the yield on the bid-side price of a reference security plus a fixed spread as follows:

• 8.875% notes based on the 3.125% U.S. Treasury notes due May 15, 2019 plus 70 basis points;

• 7.875% notes based on the 2.5% U.S. Treasury notes due May 15, 2024 plus 145 bps;

• 7.875% notes based on the 3.375% U.S. Treasury notes due May 15, 2044 plus 140 bps; and

• 7.125% notes based on the 2.5% U.S. Treasury notes due May 15, 2024 plus 145 bps.

The company also will pay accrued interest up to but excluding the settlement date of Aug. 20.

BofA Merrill Lynch (888 292-0070 or 980 387-3907 collect), Credit Suisse Securities (USA) LLC (800 820-1653 or 212 538-2147 collect) and Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955 collect) are the dealer managers. D.F. King & Co., Inc. (800 549-6697 or email at cbs@dfking.com) is the depositary and information agent.

CBS is in Monday’s market with a three-part offering of senior notes in five-, 10- and 30-year tranches, as reported by Prospect News on Aug. 11.

CBS is a broadcasting company based in New York.

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