DOW JONES NEWSWIRES 
 

Cablevision Systems Corp. (CVC) announced plans to sell $500 million in notes to repurchase stock from unit CSC Holdings Inc.

The unit, in turn, will use the proceeds and cash on hand to repay or repurchase $500 million of notes maturing by 2012.

CSC Holdings is offering $1,050 for each $1,000 of principal in 7.625% notes due 2011 and $1,046.25 for $1,000 principal in 6.75% notes due 2012. Holders that tender by 5 p.m. EDT Sept. 22 will receive a $30 early-tender premium. The offer expires Oct. 6.

In July, Fitch Ratings followed in the steps of Moody's by boosting Cablevision closer to investment-grade territory, saying its debt levels and earnings were improving.

Later that month, Cablevision said it would spin off its Madison Square Garden and related assets - like the New York Knicks and Rangers sports teams - so it could return focus to its core operations.

Shares closed Tuesday at $23.87 and were inactive premarket. The stock is up 42% this year.

-By Kevin Kingsbury and Joan E. Solsman; Dow Jones Newswires; 201-938-2136; kevin.kingsbury@dowjones.com