Time Inc. is planning to use spin-off debt to acquire IPC Media

What: Time inc. will spin off parent company Time Warner and raise US $1.4 billion of debt that will be used to finance the acquisition of IPC Media.
Why it matters: The debt will be raised through an offering of unsecured senior notes and also through a secured loan facility.

TIMEWARNERTime Warner Inc. it's spinning off parent company Time Warner with US $1.4 billion in debt. The financing will be used to buy Time Inc.'s U.K. operation, IPC Media.

The company is planning to raise the debt through an offering of unsecured senior notes and also through a secured loan facility, according to a statement. However, Time Warner will not be a guarantor or provide credit support for the notes or the loan, the cable company said.

The remaining of the debt after buying IPC will be used to pay a cash dividend back to Time Warner.

Howard Averill ,Time Warner's chief financial officer, first revealed an US $1.3 billion debt load attached to the Time Inc. spin-off in early February during TW's fourth quarter earnings call.

Time Warner bought IPC Media, which publishes editions of magazines such as Woman's Weekly, NME and InStyle, in 2001 for about US $1.7 billion.

According to sources within Time Inc. ,the spinoff may happen by the end of the second quarter.

Sources: Foliomag,WWD

 

 

 


Editorial Staff @portada_online

Portada Staff

MORE FROM PORTADA


The 5 Most Pressing Questions About Influencer Marketing Answered by Band of Insiders, Best Buy, Bimbo, and Pepsico

The 5 Most Pressing Questions About Influencer Marketing Answered by Band of Insiders, Best Buy, Bimbo, and Pepsico

During the seventh edition of the #PortadaMX summit, experts in Influencer Marketing took the stage to discuss best practices surrounding this elusive but undeniably effective tool to reach consumers. Vivian Baron, CEO and Creative Chairwoman at Band of Insiders, presented the panelists: Best Buy Mexico's E-commerce Subdirector José Camargo, Grupo Bimbo's Global Consumer Engagement Lead Giustina Trevisi, Band of Insiders' Influencer Marketing Manager Leonardo Vargas, and Pepsico/Drinkfinity's Director of Business Innovation & Marketing Yamile Elias.


Experts: Sears’ Future in Mexico Remains Bright, Implications for U.S. Hispanic Market

Experts: Sears’ Future in Mexico Remains Bright, Implications for U.S. Hispanic Market

Experts tell Portada the downfall of the storied retailer won’t affect the Sears franchise in Mexico where better merchandising and e-commerce under the management of Grupo Carso, owned by Mexican billionaire Carlos Slim, have built the franchise into a big hit with Mexican consumers. The implications for the U.S. Hispanic Market.