AOL Time Warner Sells $6 Billion in Bonds
AOL Time Warner Inc. sold $6billion of bonds, 50% more than planned, to refinance short-term debt and position itself for possible further acquisitions.
New York-based AOL, the world’s biggest Internet and media company, drew more than $10 billion of bids for its bonds after offering yields as high as 7.753% to soothe investors nervous about its financial flexibility as it grows.
AOL will use proceeds to pay down its nearly $4 billion of bank loans and more than $3 billion of short-term debt, Treasurer Ray Murphy said. AOL borrowed this year to buy back a 49.5% stake in AOL Europe from Germany’s Bertelsmann for $6.75 billion in cash.
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