By Andrea Heisinger
New York, Feb. 23 - Viacom Inc. priced $750 million of senior notes (Baa1/BBB+/BBB+) in two maturities on Thursday, an informed source said.
The $500 million tranche of 1.25% three-year notes sold at 99.789 to yield 1.322% with a spread of Treasuries plus 90 basis points. The paper priced at the low end of guidance, which was in the 95 bps area.
There is a make-whole call at 15 bps over Treasuries.
A $250 million tranche of 4.5% 30-year bonds priced at 98.063 to yield 4.66% with a spread of Treasuries plus 150 bps. The bonds sold at the tight end of talk in the 155 bps area.
The bonds have a make-whole call at Treasuries plus 30 bps.
The notes feature a change-of-control put at 101%.
BNP Paribas Securities Corp., Morgan Stanley & Co. LLC and Wells Fargo Securities LLC were the active bookrunners. RBC Capital Markets LLC was a passive bookrunner.
Proceeds will be used for general corporate purposes.
Viacom was last in the market with a $1 billion offering of notes with five- and 10-year maturities on Dec. 7, 2011.
The entertainment company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior notes
|
| Amount: | $750 million
|
| Bookrunners: | BNP Paribas Securities Corp., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC (active), RBC Capital Markets LLC (passive)
|
| Change-of-control put: | 101%
|
| Distribution: | Off shelf
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Feb. 27, 2015
|
| Coupon: | 1.25%
|
| Price: | 99.789
|
| Yield: | 1.322%
|
| Spread: | Treasuries plus 90 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 95 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | Feb. 27, 2042
|
| Coupon: | 4.5%
|
| Price: | 98.063
|
| Yield: | 4.66%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 155 bps area
|
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