Viacom prices offer to issue new notes for 6.875% notes, 6.75% notes

By Susanna Moon

Chicago, Nov. 30 - Viacom Inc. said it priced the offer to issue new notes in exchange for its outstanding $1.75 billion 6.875% senior debentures due April 30, 2036 and its $250 million 6.75% senior debentures due Oct. 5, 2037.

In the exchange offer, the company will issue up to $250 million of 4.375% senior debentures due 2043 on Nov. 26, as announced on Nov. 19.

Payment for each $1,000 principal amount will be $1,419.44 of new notes for the 6.875% notes and $1,413.10 of new notes for the 6.75% notes tendered by the early tender deadline at 5 p.m. ET on Nov. 30, which includes an early participation payment of $50.00 per $1,000 of notes.

Those who tender after the early deadline will receive the exchange price of $1,367.70 per $1,000 of 6.75% notes and $1,361.37 per $1,000 of 6.75% notes.

Pricing for the offer was set at 2 p.m. ET on Nov. 30 using the 2.75% Treasury note due Aug. 15, 2042 plus a spread of 153 basis points. The reference yield was 2.801%. The new notes' value was $966.49, and the total exchange price was $1,371.87 for the 6.875% notes and $1,365.75 for the 6.75% notes.

The offer will end at midnight ET on Dec. 14. Tendered notes may be withdrawn by the early tender date.

The exchange offer is only being made to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.

For a copy of the eligibility letter, contact Global Bondholder Services Corp. (866 389-1500, banks and brokerages call, 212 430-3774).

The entertainment company is based in New York City.

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