By Andrea Heisinger
New York, Aug. 19 - Viacom Inc. sold an upsized $850 million of senior notes (Baa3/BBB/BBB) in two tranches Wednesday, an informed source said.
The size was initially $750 million, according to a press release.
The $600 million of 4.375% five-year notes priced at 99.291 to yield 4.533%, or Treasuries plus 210 basis points. They were officially talked at 210 to 215 bps over Treasuries, a source close to the deal said. The notes were "whispered more rich than guidance that came out," he said.
The $250 million tranche of 5.625% 10-year notes priced at 99.247 to yield 5.724%, or Treasuries plus 225 bps. Guidance was 225 to 230 bps, the sources said, with initial whispers tighter than where the tranche priced.
Both tranches have a make-whole call at Treasuries plus 35 bps.
Bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBS Securities Inc.
Proceeds will be used to fund a tender offer for 5.75% notes due 2011 and to repay borrowings under a revolving credit facility and commercial paper program.
The media company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior notes
|
| Total amount: | $850 million, increased from $750 million
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Trade date: | Aug. 19
|
| Settlement date: | Aug. 26
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 15, 2014
|
| Coupon: | 4.375%
|
| Price: | 99.291
|
| Yield: | 4.533%
|
| Spread: | Treasuries plus 210 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 210 to 215 bps, whispered tighter than price
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Sept. 15, 2019
|
| Coupon: | 5.625%
|
| Price: | 99.247
|
| Yield: | 5.724%
|
| Spread: | Treasuries plus 225 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Price talk: | 225 to 230 bps, whispered tighter than price
|
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