By Andrea Heisinger
New York, March 24 - Viacom Inc. priced $500 million of 3.5% six-year senior notes on Thursday at a spread of Treasuries plus 155 basis points, said a source away from the trade.
The notes were sold at the tight end of talk that was in the range of 155 bps to 160 bps.
The notes (Baa1/BBB+/BBB+) were priced at 99.139 to yield 3.661%.
There is a make-whole call at Treasuries plus 25 bps and a change-of-control put at 101%.
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the active bookrunners. BNP Paribas Securities Corp. was a passive bookrunner.
Proceeds will be used for general corporate purposes, which could include the repayment of borrowings under a commercial paper program, the scheduled maturity of 5.75% notes due in April and stock repurchases.
Viacom last priced bonds in a $500 million sale of 4.5% senior notes due 2021 on Feb. 14. Those sold at 110 bps over Treasuries.
The media company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | April 1, 2017
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC (active), BNP Paribas Securities Corp. (passive)
|
| Coupon: | 3.5%
|
| Price: | 99.139
|
| Yield: | 3.661%
|
| Spread: | Treasuries plus 155 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | March 24
|
| Settlement date: | March 31
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
| Price talk: | 155 to 160 bps
|
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