EmptyTW debt sale
Time Warner Inc. on Wednesday launched $5 billion in debt in a four-part sale, said joint lead manager Barclays Capital. The sale includes $2 billion in three-year floating rate notes expected to have a coupon of 0.23 percentage points over the three-month London Inter Bank offered rate. It also includes $1 billion in five-year notes expected to yield 0.92 percentage points above U.S. Treasuries, $1 billion in 10-year notes expected to yield 1.31 percentage points over Treasuries and $1 billion in 30-year bonds expected to yield 1.78 percentage points over Treasuries. Time Warner shares fell fractionally Wednesday to $19.64.
Napster Inc., which has hired UBS Investment Bank to explore strategic alternatives, posted a narrower quarterly loss Wednesday. The digital-music company said its second-quarter net loss was $9 million, compared with a loss of $13.6 million a year ago. Revenue rose 9% to $25.5 million. As of the end of the quarter, Napster's total paid-subscriber base was 518,000, compared with a subscriber base of 512,000 at the end of the previous quarter. Napster said it expects revenue to exceed $27 million in the current quarter. Shares of Napster rose 2% in after-hours trading Wednesday when it released its results.
Euro Dis loss
Euro Disney SCA, operator of Disneyland Resort Paris, on Wednesday posted a net loss for its latest fiscal year of €88.6 million ($113.4 million) on revenue that rose 4.5% to €1.1 billion ($1.4 billion). The heavily indebted company, 40% of which is owned by the Walt Disney Co., also said it believes that it has complied with the financial goals it set for this fiscal year and will do so again next year, possibly negating the need for further debt-restructuring measures.