What Did Viacom Just Do To Tackle Its Debt?

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bobbakish
Bob Bakish

The company headed by President/CEO Bob Bakish has agreed to twin debt offerings designed to give the parent of SpongeBob a little more swimming room with its finances.


Viacom announced late Thursday (2/23) that it is selling $650 million in aggregate principal amount of 5.875% fixed-to-floating rate junior subordinated debentures due 2057 at a price equal to 100% of the principal amount thereof.

At the same time, it is selling $650 million in aggregate principal amount of 6.25% fixed-to-floating rate junior subordinated debentures due 2057 at a price equal to 100% of the principal amount thereof.

The sale of the debentures is expected to close on Tuesday, Feb. 28.

The offering are being made so Viacom can repay its outstanding indebtedness. This includes the repayment, in whole or in part, of up to $500 million aggregate principal amount of its 6.125% senior notes due October 2017, up to $500 million aggregate principal amount of its 2.5% senior notes due September 2018, up to $400 million aggregate principal amount of its 2.2% senior notes due April 2019 and borrowings under its commercial paper program, and, to the extent that any proceeds remain, for general corporate purposes.

The joint structuring agents and book-running managers for the offering are Merrill Lynch, Pierce, Fenner & Smith Inc. and Morgan Stanley.


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