CBS Initiates Effort to Spin Off Outdoor Advertising Unit
March 21, 2014
Out-of-home advertising company CBS Outdoor Americas Inc. has launched a road show for its initial public offering.
CBS Outdoor Americas Inc. (CBSO), the outdoor advertising subsidiary of CBS Corp., announced that on March 17 it launched a road show for its initial public offering (IPO).
CBSO is offering 20 million shares of its common stock, and underwriters will have a 30-day option to buy an additional three million shares. The IPO price is currently expected to be between $26 and $28 per share, and the shares are expected to trade on the New York Stock Exchange under the symbol "CBSO."
After the IPO, CBS Corp. will own approximately 83 percent of CBSO (or approximately 81 percent of the outstanding stock of CBSO if underwriters exercise their option to purchase additional shares in full). CBSO plans to convert into a real estate investment trust (REIT) later this year, following CBS's divestiture of its shares through a tax-free split-off.
CBSO expects to use the net proceeds from the IPO as partial consideration to CBS for the contribution of the outdoor business entities as well as the cash portion of the distribution to shareholders required in connection with the conversion to a REIT.
Goldman, Sachs & Co., BofA Merrill Lynch, J.P. Morgan and Morgan Stanley are acting as joint book-running managers, and Citigroup, Deutsche Bank Securities and Wells Fargo Securities are acting as book runners.
CBS Outdoor offers a variety of digital and static outdoor advertising options, including billboards, walls, bus and rail media, street furniture, specialty advertising signs, mobile billboards, sports media and more. According to the New York-based company, it also has the strongest multi-media digital inventory by market of any outdoor media vendor, as well as mobile interactive capabilities throughout its entire out-of-home media.