By Andrea Heisinger
Omaha, Oct. 2 - Viacom Inc. priced an upsized $750 million offering in two parts Tuesday, an informed source said.
The offering was upsized from a planned $350 million in senior notes (Baa3/BBB/BBB).
Viacom sold a $500 million tranche of 6.125% 10-year senior notes at 99.286 to yield 6.222%, or Treasuries plus 170 basis points. The tranche has a make-whole call at Treasuries plus 30 bps.
The company also sold a $250 million tranche of 6.75% 30-year senior debentures at 99.275 to yield 6.807%, or Treasuries plus 203 bps. There is a make-whole call at Treasuries plus 35 bps.
Bookrunners were Deutsche Bank Securities Inc. and RBS Greenwich Capital Markets, Inc.
Proceeds will be used to pay all or a portion of amounts outstanding under the company's revolving credit facility or commercial paper program.
The global entertainment company is based in New York City.
| Issuer: | Viacom Inc.
|
| Amount: | $750 million
|
| Bookrunners: | Deutsche Bank Securities Inc., RBS Greenwich Capital Markets, Inc.
|
| Trade date: | Oct. 2
|
| Settlement date: | Oct. 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| 10-year tranche
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Oct. 5, 2017
|
| Coupon: | 6.125%
|
| Price: | 99.286
|
| Yield: | 6.222%
|
| Spread: | Treasuries plus 170 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
|
|
| 30-year tranche
|
| Issue: | Senior debentures
|
| Amount: | $250 million
|
| Maturity: | Oct. 5, 2037
|
| Coupon: | 6.75%
|
| Price: | 99.275
|
| Yield: | 6.807%
|
| Spread: | Treasuries plus 203 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
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