Viacom accepts $582.43 million 6.25% notes due 2016 in tender offer

By Angela McDaniels

Tacoma, Wash., March 15 - Viacom Inc. accepted $582.43 million principal amount, or 38.8%, of its $1.5 billion outstanding 6.25% senior notes due 2016 in its tender offer, according to a company news release.

The offer began Feb. 14 and expired at midnight ET on March 14.

The company accepted $191,895,000 of the notes for purchase on March 1 and $390,535,000 of the notes for purchase on March 15.

Viacom said all but $5,942,000 of the accepted notes were tendered by 5 p.m. ET on Feb. 28, the early tender date.

The purchase price is $1,153.44 for each $1,000 principal amount plus accrued interest. This includes an early tender premium of $30.00 for each note tendered by the early tender date.

The price was determined based on the 2% U.S. Treasury note due Jan. 31, 2016 plus a fixed spread of 90 basis points.

The company originally planned to accept up to $500 million of the notes and later raised this cap to $576,488,000.

The tender offer was conditioned on Viacom completing an offering of notes.

Merrill Lynch, Pierce, Fenner & Smith Inc. (888 292-0070 or 980 388-9217), Mitsubishi UFJ Securities (USA), Inc. (877 649-6848 or 212 405-7440), Morgan Stanley & Co. Inc. (800 624-1808 or 212 761-0858) and Wells Fargo Securities, LLC (866 309-6316 or 704 715-8341) were the dealer managers. Global Bondholder Services Corp. (866 873-6300 or 212 430-3774) was the information agent and depositary.

Viacom is an entertainment and broadcasting company based in New York.

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