According to cable service provider Time Warner (TWX: sentiment, chart, options), Time Warner Cable has priced its $5-billion public offering of debt securities ahead of its separation from TWX. Some of the proceeds from the issue will be used to finance a 1-time cash dividend to stockholders of Time Warner Cable, which will be paid shortly before its separation. According to Time Warner Cable, "If the separation is not consummated and the special dividend is not paid, Time Warner Cable will use the proceeds from the issuance of the debt securities for general corporate purposes, including repayment of indebtedness." The deal is expected to close Thursday.

TWX is currently half-a-percent lower this morning, but this is just a continuation of the equity's 52-week downtrend. During this time period, TWX has shed 27.2%. Last week, the stock lost potential support at its 10-week moving average, which recently completed a bullish cross of its 20-week counterpart. While this is often a bullish technical development, the stock has not cashed in and is in the midst of a 6-week pullback.