We propose a method to subtract a photon from a double sideband mode of continuous-wave light. The central idea is to use phase modulation as a frequency sideband beamsplitter in the heralding photon subtraction scheme, where a small portion of the sideband mode is downconverted to the carrier frequency to provide a trigger photon. An optical Schrodingers cat state is created by applying the propesed method to a squeezed state at 500MHz sideband, which is generated by an optical parametric oscillator. The Wigner function of the cat state reconstructed from a direct homodyne measurement of the 500MHz sideband modes shows the negativity of $W(0,0) = -0.088pm0.001$ without any loss corrections.