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TIME WARNER $2.1 BILLION LYONS RATED 'BBB-' BY FITCH

 NEW YORK, June 24 /PRNewswire/ -- Time Warner Inc.'s $2.1 billion senior Liquid Yield Option Notes due 2013 are rated "BBB-" by Fitch. The rating reflects Time Warner's strong cash flow generating ability, as well as the size and diversity of its media assets, and acknowledges the company's high leverage. The credit trend is improving.
 Net proceeds of the offering ($766 million) along with available cash and equivalents will be used to redeem $782 million of the company's "BB+" 8 3/4 percent convertible subordinated debentures due 2015. Merrill Lynch, the underwriter, has a 30-day option to purchase up to an additional $315 million aggregate principal value of the LYONs. If these additional bonds are sold, proceeds will increase to about $900 million. The LYONs do not pay cash interest, while the 8 3/4 percent convertible subordinated debentures do. As a result, the company will reduce its annual cash interest expense by about $68 million annually, $79 million if the overallotment is exercised.
 These zero coupon senior notes are a takedown under the $1.5 billion shelf registration the company filed in February 1993 and are convertible into Time Warner common stock. The notes are redeemable anytime after five years. Noteholders may put the notes to Time Warner at the fifth, 10th, and 15th anniversary of the issue. The company has the option of satisfying its obligation by paying cash or issuing shares of common stock at an equivalent market value.
 -0- 6/24/93
 /CONTACT: Keith Foley, 212-908-0572 or Stuart Rossmiller, 212-908-0639, both of Fitch/
 (TWX)


CO: Time Warner Inc. ST: New York IN: ENT PUB SU: RTG

10:11 -- NY019 -- 5230 06/24/93 10:23 EDT
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Publication:PR Newswire
Date:Jun 24, 1993
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