CBS Outdoor Prices IPO Of 20 Mln Shares At $28 A Share

(RTTNews) - CBS Outdoor Americas Inc., the outdoor advertising company of media conglomerate CBS Corp. (CBS, CBS-A), late Thursday said that it has priced its initial public offering or IPO of 20 million shares at $28 per share.

The shares would begin trading March 28 on the New York Stock Exchange under the ticker symbol "CBSO". The offering would close on or about April 2, subject to customary closing conditions.

In addition, CBS Outdoor has granted underwriters a 30-day option to purchase an additional 3 million shares at the IPO price, less underwriting discounts and commissions.

At closing, CBS will own about 83 percent of CBS Outdoor, or about 81 percent if underwriters exercise their option in full.

CBS plans to divest its shares through a tax-free split-off later this year, following which CBS Outdoor plans to convert into a real estate investment trust.

CBS Outdoor said it plans to use the net proceeds 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.

CBS Outdoor is an out-of-home media company, which provides both traditional outdoor advertising properties and a network of digital displays and mobile offerings.

In the offer, 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.