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Time Warner (TWX) Announces $1.4B Debt Raise in Connection with Time, Inc., Spin

April 8, 2014 8:52 AM EDT Send to a Friend

Time Warner Inc. (NYSE: TWX) and Time Inc. announced that, in connection with Time Warner Inc.’s previously announced intention to separate Time Inc. from Time Warner Inc., Time Inc. plans to raise an aggregate $1.4 billion of debt through an offering of unsecured senior notes and by entering into a secured term loan facility. Time Warner Inc. will not be a guarantor or otherwise provide credit support for the notes or the term loan facility.

Time Inc. intends to use the expected net proceeds from this financing to fund the acquisition of Time Inc.’s U.K. publishing business, which is currently owned by a wholly owned subsidiary of Time Warner Inc. Time Inc. intends to use the remaining expected net proceeds from this financing to pay a special cash dividend to Time Warner Inc.

The notes have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or the securities laws of any state or other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and any other applicable securities laws.

The notes will be sold in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration set forth in Rule 144A under the Securities Act and sold outside the United States to non-U.S. persons in reliance on the exemption from registration set forth in Regulation S under the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.





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