CBS Outdoor Expects To Price IPO In $26-$28 Per Share Range

(RTTNews) - CBS Outdoor Americas Inc., the outdoor advertising company of media conglomerate CBS Corp. (CBS, CBS-A), said Monday that it will offer 20 million shares of its common stock in an initial public offering that is expected to be priced between $26 and $28 per share.

In a filing with the U.S. Securities and Exchange Commission, CBS Outdoor said it expects net proceeds from the offering of about $515.7 million, or about $593.1 million if the underwriters exercise their option to purchase additional shares in full. The company's common stock has been approved for listing on the New York Stock Exchange under the symbol "CBSO".

Following the completion of the offering, CBS Outdoor will have 120 million shares outstanding, while CBS will own about 83 percent of the unit.

CBS currently intends to sell all of the shares of CBS Outdoor common stock that it will indirectly own upon the completion of the IPO following the "lock-up" period. CBS plans to effect the separation by means of a tax-free split-off.

Following the separation, CBS Outdoor intends to elect and qualify to be taxed as a real estate investment trust or REIT for federal income tax purposes.

New York-based CBS Outdoor is a lessor of advertising space or displays on out-of-home advertising structures and sites across the U.S., Canada and Latin America. The company's portfolio primarily consists of billboard displays. As of December 31, 2013, the company had about 330,000 displays in the U.S. and about 26,200 displays across Canada and Latin America.

For the year ended December 31, 2013, CBS Outdoor recorded a 27 percent increase in net income to $143.5 million, while revenues edged up less than 1 percent to $1.29 billion.

Goldman Sachs, BofA Merrill Lynch, J.P. Morgan and Morgan Stanley are the lead underwriters of the offering.