Viacom announces $1.5 billion debt offering


ViacomViacom has agreed to sell $400 million in aggregate principal amount of 2.200% senior notes due 2019 at a price equal to 99.947% of the principal amount thereof, $550 million in aggregate principal amount of 3.875% senior notes due 2024 at a price equal to 99.192% of the principal amount thereof and $550 million in aggregate principal amount of 5.250% senior debentures due 2044 at a price equal to 99.831% of the principal amount thereof. The sale of the Senior Notes and Debentures is expected to close on 3/11.

Viacom intends to use the net proceeds from the offering for general corporate purposes, including, but not limited to, the repayment of outstanding debt, which includes redemption of $600 million aggregate principal amount of its 4.375% Senior Notes due 2014 and borrowings under its commercial paper program, and the repurchase of shares under its share repurchase program.

The managers for the offering are Deutsche Bank Securities, Morgan Stanley & Co, Wells Fargo Securities, Mizuho Securities USA and SMBC Nikko Securities America. Viacom’s senior unsecured debt is currently rated BBB by Standard & Poor’s, BBB+ by Fitch, and Baa2 by Moody’s.