Rainbow Nets $800M in Bond Offering


Cablevision Systems Corp. said its Rainbow National Services subsidiary has completed an $800 million bond offering that will be used to finance the planned spinoff of Rainbow Media Enterprises.

In a statement, RNS said it sold $300 million in 8.75% senior notes due 2012 and $500 million in 10.375% senior notes due 2014. In a separate deal, RNS said it also closed a $950 million senior credit facility, $600 million of which was drawn at closing.

The net proceeds of both deals were distributed to RNS’ parent, RME, and will be used to pay down about $705 million in bank debt at Rainbow Media Holdings Inc. The remaining proceeds -- about $661 million -- will be invested in RME subsidiaries, mainly its Rainbow DBS unit.

Cablevision expects to spin off RME -- which will include its national programming networks -- in September.