CBS CORP. TAKES NEXT STEP TO SPIN OFF
CBS RADIO

CBS Corp., moving forward following its previously announced intention to spin off CBS Radio, says it plans to offer $460 million of senior unsecured notes and to enter into a $1 billion senior-secured term loan, the figures subject to market and other conditions in both instances.

The expectation is that the Les Moonves-led parent company will receive “substantially all” of the net proceeds from both the notes offering and the term loan. The remaining net proceeds not used for such distribution will be channeled to CBS Radio for general corporate purposes and ongoing cash needs. Got that?

In July. CBS Radio announced that it had set a target of $100m in its filing with the U.S. Securities and Exchange Commission, the first step in CBS Corp.’s exit from the radio business.

CBS Radio is the second largest radio group in the U.S. by audience and revenue. The chain has 117 terrestrial radio stations, with digital properties in 26 radio markets, including all the top 10 radio markets and 19 of the top 25 radio markets. While strong in sports radio, the collection includes perennial Modern Rock power KROQ L.A.