Time Warner Raises $1 Billion of Debentures in First 2013 Sale

Time Warner Inc. (TWX), the owner of the Warner Bros. movie studio, raised $1 billion in a two-part bond offering, its first sale this year.

Time Warner sold equal portions of 4.05 percent, 10-year debt that pays 125 basis points more than similar-maturity Treasuries and 5.35 percent, 30-year bonds at 148 basis points more than benchmarks, according to data compiled by Bloomberg. Moody’s Investors Service rates the notes Baa2, two levels above speculative grade.

The owner of TNT, CNN and HBO cable channels last tapped the bond market in June 2012, issuing two $500 million portions, according to data compiled by Bloomberg. The 3.4 percent notes due 2022 traded at 97.4 cents on the dollar to yield 3.8 percent on Dec. 5, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Proceeds from today’s sale will be used for general corporate purposes, according to a regulatory filing by the New York-based company. A basis point is 0.01 percentage point.

To contact the reporter on this story: Matt Robinson in New York at mrobinson55@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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