National Amusements to sell CBS, Viacom stock plus assets to pay debt

By Lisa Kerner

Charlotte, N.C., Oct. 14 - National Amusements, Inc. said it expects to be able to pay off all of its existing creditors in full while retaining control of CBS Corp. and Viacom Inc. as well as ownership of theater assets in the United Kingdom, Brazil and the United States.

The company will pay the debt using proceeds from the one-time underwritten sale of a portion of its CBS and Viacom stock and proceeds from the anticipated sales of some noncore assets, according to a National Amusements news release.

National Amusements expects to receive proceeds of approximately $600 million in the offering of Viacom stock and approximately $345 million in the offering of CBS stock.

According to National Amusements, it is not planning to further reduce its ownership levels in CBS and Viacom and will retain more than 75% of the voting control of each company.

"We believe in the significant long-term value of Viacom and CBS Corp., both of which are well-positioned for growth in this improving economic environment," National Amusements chairman and chief executive officer Sumner Redstone said in the release.

"Similarly, with leadership positions in key domestic and international markets, National Amusements theaters have outstanding near and long-term prospects."

National Amusements is a Dedham, Mass.-based motion picture exhibitor.

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