AOL Time Warner is preparing a $4 billion (€4.5bn; £2.8bn) bond issue, with a pricing expected as soon as today (Wednesday).

In the wake of the Enron debacle, the commercial paper market – in which investors buy short-term securities issued by companies – has largely dried up. AOL TW is one of a number of firms consequently shifting to long-term financing to repay short-term debts and bank loans.

However, bond yields are currently higher than those on short-term commercial paper, meaning the cost of borrowing for AOL TW will rise.

The issue is expected to involve three, five, ten and thirty-year bonds.

Data sourced from: Financial Times; additional content by WARC staff