Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

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

SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Time Warner Launches $1 Billion in Bonds

share with twitter share with LinkedIn share with facebook
share via e-mail
0
06/08/2012 | 08:45pm CET

--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
0
Latest news on TIME WARNER INC
12/09 AT&T : Consumer Cost Emerges As Key Issue In Grilling Of AT&T-Time Warner Merger
12/09 TIME WARNER : Senators Listen, Posture On AT&T Time Warner Deal
12/09 AT&T, TIME WARNER MERGER LATEST NEWS : Buying Time Warner Wont Rip Off Competiti..
12/09 Trump right to worry about AT&T, Time Warner merger plan
12/08 DuPont CEO Breen says Trump win unlikely to impact Dow deal
12/08 TIME WARNER : Chairman and CEO Jeff Bewkes to Participate in the UBS Global Medi..
12/08 AT&T : Innovation or monopoly? Panel mulls AT&T-Time Warner deal
12/08 AT&T : Panel looks at AT&T-Time Warner deal Innovation or monopoly? Panel looks ..
12/07 TIME WARNER : Black employees file discrimination suit against CNN, Turner
12/07 Business Highlights
More news
Sector news : Movie, TV Production & Distribution
02:07p Murdoch's new Sky bid should be probed say UK opposition politicians
12/09DJOrange Considering Stake in Vivendi's Canal Plus
12/09DJTWENTY FIRST CENTURY FOX : 21st Century Fox in Talks to Buy U.K.'s Sky -- Update
12/09 FTSE records best week since July, Sky surges 27 percent on Fox bid
12/09DJTWENTY FIRST CENTURY FOX : 21st Century Fox in Talks to Buy U.K.'s Sky -- 2nd Up..
More sector news : Movie, TV Production & Distribution
News from SeekingAlpha
12/09 ACTIVATE FOUNDER : AT&T/Time Warner makes consumer sense
12/08 The FCC Takes On AT&T And Verizon's Media Goals
12/08 Why Disney Should Begin To Get Concerned About Time Warner's TV Superhero Suc..
12/07 Turner, Snap extend partnership for new coverage and original shows
12/07 Time Warner volatile, AT&T higher as Senate holds hearings
Advertisement
Financials ($)
Sales 2016 29 113 M
EBIT 2016 7 555 M
Net income 2016 4 527 M
Debt 2016 20 255 M
Yield 2016 1,67%
P/E ratio 2016 16,77
P/E ratio 2017 16,12
EV / Sales 2016 3,22x
EV / Sales 2017 3,00x
Capitalization 73 435 M
More Financials
Chart TIME WARNER INC
Duration : Period :
Time Warner Inc Technical Analysis Chart | TWX | US8873173038 | 4-Traders
Full-screen chart
Technical analysis trends TIME WARNER INC
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 34
Average target price 102 $
Spread / Average Target 7,3%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Jeff 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 Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
TIME WARNER INC47.26%73 435
PERFECT WORLD CO LTD--.--%6 289
TOHO CO LTD-2.39%5 359
MADISON SQUARE GARDEN ..8.28%4 198
ZHEJIANG HUACE FILM AN..--.--%3 220
ASTRO MALAYSIA HOLDING..--.--%3 205
More Results