By Andrea Heisinger
New York, June 7 - Viacom Inc. sold an upsized $400 million of notes (Baa1/BBB+/BBB+) in two tranches on Thursday, a source away from the deal said.
The deal was upsized from $300 million, the source said.
The company reopened its issue of 1.25% three-year notes to add $100 million. The notes were priced at 100.026 to yield 1.24% with a spread of Treasuries plus 87.5 basis points. There is a make-whole call at Treasuries plus 15 bps.
Total issuance is $600 million, including $500 million priced at 90 bps over Treasuries on February 23.
A $300 million tranche of 3.125% 10-year notes sold at 98.553 to yield 3.296% with a spread of 165 bps over Treasuries.
There is a make-whole call at Treasuries plus 25 bps until March 15, 2022, and par call after that date.
Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were active bookrunners. Mizuho Securities (USA) Inc. and SMBC Nikko Capital Markets Ltd. were passive.
Proceeds are being used for general corporate purposes of debt repayment, including Viacom's commercial paper program and common stock share repurchase.
The entertainment company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Notes
|
| Amount: | $400 million, upsized from $300 million
|
| Bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC (active), Mizuho Securities (USA) Inc., SMBC Nikko Capital Markets Ltd. (passive)
|
| Trade date: | June 7
|
| Settlement date: | June 14
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| Three-year notes
|
| Amount: | $100 million, reopened
|
| Maturity: | Feb. 27, 2015
|
| Coupon: | 1.25%
|
| Price: | 100.026
|
| Yield: | 1.24%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Total issuance: | $600 million including $500 million priced at 90 bps over Treasuries on Feb. 23
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | June 15, 2022
|
| Coupon: | 3.125%
|
| Price: | 98.553
|
| Yield: | 3.296%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps until March 15, 2022, after at par
|
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