NEW YORK (TheStreet) -- Shares of CBS Corp. (CBS) are up 1.65% to $60.21 after it was reported that the company plans to issue $1.75 billion of bonds to help buy back existing debt, sources told Bloomberg.
The deal, the first debt offering by CBS in two years, will include $550 million of 30-year bonds and $600 million each of 10-year and five-year notes, sources said.
CBS raised its quarterly dividend this month and doubled its share repurchase program to $6 billion.
The company also set a gross leverage target of 2.5-times, and needs an estimated $2 billion in new debt to reach that threshold, according to research firm CreditSights.
TheStreet Ratings team rates CBS CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CBS CORP (CBS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."