Viacom gives final tally in exchange offer for 6.875%, 6.75% notes

By Susanna Moon

Chicago, Dec. 17 - Viacom Inc. said investors tendered $670,037,000 of its outstanding $1.75 billion 6.875% senior debentures due April 30, 2036 and $173,915,000 of its $250 million 6.75% senior debentures due Oct. 5, 2037 by the end of the offer at midnight ET on Dec. 14.

Investors had tendered $170,000 more 6.875% notes and $1.18 million more 6.75% notes since the early deadline at 5 p.m. ET on Nov. 30. The exchange offer for new 4.375% senior debentures due 2043 began on Nov. 19.

The company expected to settle the notes on Dec. 17, according to a press release.

Holders who tendered their notes for exchange after the early participation date will also receive a cash payment for interest up to but excluding the settlement date, less interest accrued on the notes due 2043 issued in exchange up to but excluding the settlement date.

As noted before, the total purchase price for each $1,000 principal amount is $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 date, which includes an early participation payment of $50.00 per $1,000 of notes.

Those who tendered 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.

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

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

The entertainment company is based in New York City.

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