CBS may have to borrow to pay off maturing debt
source: http://www.latimes.com/entertainment/news/business/la-fi-cotown-cbs6-2009mar06,0,3435676.story
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CBS Corp. may face an $893-million funding gap for bonds maturing next year even after slashing its dividend 81% to save cash, a Barclays Capital credit analyst said.
CBS may have to sell new debt to help pay off $1.4 billion of bonds due in July 2010, Scott Shiffman wrote in a note to clients. The company may be less likely to draw on its $3-billion revolving credit facility, which will probably have to be replaced before it expires at the end of 2010, he said.
"The first course of action would be for CBS to pursue permanent long-term debt in the public debt markets," Shiffman said in an interview. "Given many investors' concerns about the CBS credit, a potential new bond could have onerous terms for CBS."
CBS may have to sell new debt to help pay off $1.4 billion of bonds due in July 2010, Scott Shiffman wrote in a note to clients. The company may be less likely to draw on its $3-billion revolving credit facility, which will probably have to be replaced before it expires at the end of 2010, he said.
"The first course of action would be for CBS to pursue permanent long-term debt in the public debt markets," Shiffman said in an interview. "Given many investors' concerns about the CBS credit, a potential new bond could have onerous terms for CBS."
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