Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Nyse  >  Time Warner    TWX

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Time Warner Launches $1 Billion in Bonds

share with twitter share with LinkedIn share with facebook
share via e-mail
06/08/2012 | 08:45pm CEST

--Time Warner sells two-part, $1 billion bond deal

--Deal benefits as sole issuer Friday

--Sentiment lower as rally stalls

Time Warner Inc. (>> Time Warner Inc.) hit the market with a billion-dollar bond deal, a rarity on Fridays and a sign that the corporate scramble to borrow isn't letting up.

The sale included 10-year and 30-year triple-B rated bonds, offered at yields of 3.417% and 4.969%, respectively, or 1.80 and 2.25 percentage points over the comparable Treasury rate.

A banker on the deal said Time Warner had the advantage of being the sole issuer in the market, whereas nine companies competed for investor attention Thursday as the market rallied.

Sentiment was weaker in early morning--Markit's CDX Investment Grade Index deteriorated 0.6%--but it was actually a better day to borrow because Treasury yields had fallen some 10 basis points, the banker said. Meantime, spreads--the extra-yield corporate bonds offer over Treasurys--were fairly stable.

"It was not an obvious decision to borrow given the weaker tone this morning, but a number of factors show it's actually an attractive day," he said.

Large deals are often called "benchmark" in the morning, with the size being determined later in the day based on demand. But for a Friday, defining the size at $1 billion "helps people get their arms around what we're looking to do here," said another banker. He added that the potential for volatility next week was a factor in closing the transaction now.

The last time a billion-dollar deal priced on a Friday was April 27, when Indonesian government-owned PT Pertaminas sold $2.5 billion, Dealogic shows.

Proceeds are for general corporate purposes, according to an early term sheet.

This marks Time Warner's first deal of 2012. Last October, it sold $1 billion of 10-year and 30-year bonds bearing coupons of 4% and 5.375%, respectively, according to Dealogic. In a $2 billion deal priced in March 2011, coupon rates were 4.75% and 6.25% for the same maturities.

The Time Warner deal followed a flurry of issues placed Thursday, including jumbo-size sales from Ford Motor Credit Co., American Express Co. (>> American Express Company) and General Electric Capital Corp. This brought weekly issuance to at least $14 billion, surpassing forecasts of $10 billion.

New deals have been performing well in secondary trading, helping to encourage investors and issuers to participate in the primary market.

Deere & Co. (>> Deere & Company), for instance, sold 10-year bonds at 105 basis points over Treasurys on Tuesday; they are now trading at a spread of 93 basis points, including a three-basis-point tightening Friday, according to MarketAxess.

Write to Patrick McGee at patrick.mcgee@dowjones.com.

Stocks mentioned in the article : Time Warner Inc., American Express Company, Deere & Company
share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on TIME WARNER
03:32p TIME WARNER : Turner Acquires Exclusive Multi-Platform Rights to UEFA Champions ..
01:15pDJTIME WARNER : Turner Sports to Launch Streaming Network to Air Champions League
08/16 AT&T : T) Inks Deal with Communications Workers of America
08/15DJCorrection to Greenlight Capital's GM Stake Article on Monday
08/12 AT&T : Appoints GroupM CEO To Head Its New Ad And Analytics Unit
08/11DJHBO'S HACK : 'Hollywood Is Under Siege'
08/10 'DOTA 2' : Big crowds, high stakes and plenty of KeyArena drama
08/09 AT&T : Merger Delayed After DOJ Appointment Blocked
08/09 'DOTA 2' DOCUMENTARY : Big crowds, high stakes and plenty of KeyArena drama
08/08 AT&T : HBO says probe of hack is ongoing
More news
News from SeekingAlpha
04:42p Hulu live offering reaches 201 local stations with Fox additions
03:56p WSJ : AT&T hitting Time Warner deal milestone in talks with DOJ
08:31a Checking In On Time Warner
06:59a WALL STREET BREAKFAST : The Minutes Keep Ticking
03:54a Latest cyber breach at HBO
Financials ($)
Sales 2017 30 875 M
EBIT 2017 8 052 M
Net income 2017 4 920 M
Debt 2017 19 557 M
Yield 2017 1,63%
P/E ratio 2017 16,34
P/E ratio 2018 15,64
EV / Sales 2017 3,20x
EV / Sales 2018 2,98x
Capitalization 79 274 M
Duration : Period :
Time Warner Technical Analysis Chart | TWX | US8873173038 | 4-Traders
Technical analysis trends TIME WARNER
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 29
Average target price 106 $
Spread / Average Target 3,9%
EPS Revisions
Jeffrey L. Bewkes Chairman & Chief Executive Officer
Howard M. Averill Chief Financial Officer & Executive Vice President
Mitchell A. Klaif Chief Information Officer & Senior Vice President
James L. Barksdale Independent Director
Robert Charles Clark Lead Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
TIME WARNER5.97%79 274
TOHO CO LTD23.60%7 021
CHINA FILM CO LTD-22.65%5 091