Another step for TW toward AOL spinoff


Time Warner is laying more groundwork for a possible spinoff of AOL.

On Monday, the company said it has started to ask debtholders for consent to amend terms governing $12.3 billion of its debt. It is asking bondholders to change the terms to allow the conveyance or transfer by AOL Llc. of its properties and assets. Under the plan, the debt would be guaranteed by HBO.

For each bondholder who consents by April 15, TW is offering to pay $5 for each $1,000 principal amount of debt they hold.

"This is significant because it clears a major hurdle to an AOL spin," Sanford C. Bernstein analyst Michael Nathanson said. (partialdiff)