By Andrea Heisinger
New York, Feb. 14 - Viacom Inc. sold $500 million of 4.5% 10-year senior notes on Monday at a spread of Treasuries plus 110 basis points, an informed source said.
The notes (Baa1/BBB+/) sold at 98.32 to yield 4.712%.
There is a change-of-control put at 101% if the company is downgraded to below investment grade.
Bank of America Merrill Lynch, Morgan Stanley & Co. Inc. and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to fund a cash tender offer for up to $500 million of 6.25% senior notes due 2016 and for general corporate purposes, including repayment of borrowings under a revolving credit facility and other outstanding debt.
The entertainment company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | March 1, 2021
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. Inc., Wells Fargo Securities LLC
|
| Coupon: | 4.5%
|
| Price: | 98.32
|
| Yield: | 4.712%
|
| Spread: | Treasuries plus 110 bps
|
| Change-of-control put: | 101% if the company is downgraded to below investment grade
|
| Trade date: | Feb. 14
|
| Settlement date: | Feb. 22
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
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