By Aleesia Forni and Toni Weeks
Virginia Beach, March 5 - Viacom Inc. detailed its recent $1.5 billion sale of notes (Baa2/BBB/BBB+) in three tranches, according to an FWP filed with the Securities and Exchange Commission.
The company priced $400 million of 2.2% senior notes due 2019 at 99.947 to yield 2.211%, or Treasuries plus 67 basis points.
There was also $550 million of 3.875% senior notes due 2024, which were sold at 99.192 to yield 3.973%, or Treasuries plus 127 bps.
Finally, the company priced $550 million of 5.25% senior debentures due 2044 at 99.831 to yield 5.261%.
The notes sold with a spread of Treasuries plus 162 bps.
Proceeds will be used for general corporate purposes, including the repayment of outstanding debt. The debt repayment may include the redemption of $600 million principal amount of Viacom's 4.375% senior notes due 2014, repayment of borrowings under its commercial paper program and the repurchase of shares under the company's share repurchase program.
The bookrunners were Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America, Inc.
The entertainment company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion, upsized from $1.4 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Mizuho Securities USA Inc. and SMBC Nikko Securities America, Inc.
|
| Pricing date: | March 4
|
| Settlement date: | March 11
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC-registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | April 1, 2019
|
| Coupon: | 2.2%
|
| Price: | 99.947
|
| Yield: | 2.211%
|
| Spread: | Treasuries plus 67 bps
|
| Guidance: | 80 bps to 85 bps over Treasuries
|
|
|
| 10-year notes
|
| Amount: | $550 million
|
| Maturity: | April 1, 2024
|
| Coupon: | 3.875%
|
| Price: | 99.192
|
| Yield: | 3.973%
|
| Spread: | Treasuries plus 127 bps
|
| Guidance: | Treasuries plus 145 bps to 150 bps
|
|
|
| 30-year bonds
|
| Amount: | $550 million
|
| Maturity: | April 1, 2044
|
| Coupon: | 5.25%
|
| Price: | 99.831
|
| Yield: | 5.261%
|
| Spread: | Treasuries plus 162 bps
|
| Guidance: | 175 bps to 180 bps over Treasuries
|
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