Viacom Announces $1.0 Billion Debt Offering

Viacom Announces $1.0 Billion Debt Offering

Viacom Announces $1.0 Billion Debt Offering

The FINANCIAL -- NEW YORK -- Viacom Inc. has agreed to sell $400 million in aggregate principal amount of 2.750% senior notes due 2019 at a price equal to 99.986% of the principal amount thereof (the "Senior Notes") and $600 million in aggregate principal amount of 4.850% senior debentures due 2034 at a price equal to 99.543% of the principal amount thereof (the "Senior Debentures" and, together with the Senior Notes, the "Senior Notes and Debentures"). The sale of the Senior Notes and Debentures is expected to close on December 10, 2014, subject to customary closing conditions, according to Viacom Inc. 

Viacom intends to use the net proceeds from the offering primarily for the repayment of outstanding indebtedness, which includes the repayment of $600 million aggregate principal amount of its 1.250% senior notes due February 2015 and borrowings under its commercial paper program, and, to the extent that any proceeds remain, for general corporate purposes, including, but not limited to, the repurchase of shares under its share repurchase program.

The joint book-running managers for the offering are Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Wells Fargo Securities, LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America, Inc.

Viacom's senior unsecured debt is currently rated BBB by Standard & Poor's, BBB+ by Fitch, and Baa2 by Moody's Investors Service, according to Viacom Inc.