By Andrea Heisinger
New York, Sept. 24 - Viacom Inc. priced $550 million senior unsecured notes (Baa3/BBB/BBB) in two tranches Thursday, according to an FWP filing with the Securities and Exchange Commission.
The $250 million of 4.25% six-year notes priced at 99.814 to yield 4.286% with a spread of Treasuries plus 195 basis points.
The company also reopened its 5.625% notes due Sept. 15, 2019 to add $300 million. The notes priced at 101.938 to yield 5.37%, or Treasuries plus 200 bps.
Total issuance for the notes is $550 million, including $250 million issued on Aug. 26.
The notes each have a make-whole call at Treasuries plus 35 bps and feature a change-of-control put of 101%.
The sale was announced by mid-morning and priced in the afternoon, a source close to the deal said. It was done quietly.
Bookrunners were Bank of America Merrill Lynch, J.P. Morgan Securities Inc. and Wells Fargo Securities.
Proceeds will be used to pay down existing debt, including a revolving credit facility due in 2010 and a commercial paper program.
The entertainment and broadcasting company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior unsecured notes
|
| Total amount: | $550 million
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities Inc., Wells Fargo Securities
|
| Trade date: | Sept. 24
|
| Settlement date: | Sept. 29
|
| Change-of-control put: | 101%
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Six-year notes
|
| Amount: | $250 million
|
| Maturity: | 2015
|
| Coupon: | 4.25%
|
| Price: | 99.814
|
| Yield: | 4.286%
|
| Spread: | Treasuries plus 195 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 10-year notes
|
| Amount: | $300 million, reopened
|
| Maturity: | Sept. 15, 2019
|
| Coupon: | 5.625%
|
| Price: | 101.938
|
| Yield: | 5.37%
|
| Spread: | Treasuries plus 200 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Total issuance: | $550 million, including $250 million issued on Aug. 26, 2009
|
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