By Aleesia Forni
Virginia Beach, Dec. 3 – Viacom Inc. sold $1 billion of senior notes and senior debentures (Baa2/BBB/BBB+) on Wednesday, according to an informed source and an FWP filed with the Securities and Exchange Commission.
The company sold $400 million of 2.75% notes due 2019 at 99.986 to yield 2.753%, or Treasuries plus 115 basis points.
A second tranche was $600 million of 4.85% 20-year debentures sold at 99.543 to yield 4.886%, or Treasuries plus 190 bps.
Both tranches sold at the tight end of price talk.
Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Wells Fargo Securities LLC are the bookrunners.
Proceeds will be used primarily for the repayment of outstanding debt, including $600 million of 1.25% senior notes due February 2015 and borrowings under its commercial paper program. Remaining proceeds will be used for general corporate purposes, including the repurchase of shares under the company’s share repurchase program.
Viacom is a New York-based entertainment company.
| Issuer: | Viacom Inc.
|
| Amount: | $1 billion
|
| Bookrunners: | Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Wells Fargo Securities LLC
|
| Trade date: | Dec. 3
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Issue: | Senior notes
|
| Maturity: | Dec. 15, 2019
|
| Coupon: | 2.75%
|
| Price: | 99.986
|
| Yield: | 2.753%
|
| Spread: | Treasuries plus 115 bps
|
| Price talk: | 120 bps area, tightened from 135 bps area
|
| Make-whole call: | Treasuries plus 20 bps prior to Nov. 15, 2019, then callable at par
|
|
|
| 20-year bonds
|
| Amount: | $600 million
|
| Issue: | Senior debentures
|
| Maturity: | Dec. 15, 2034
|
| Coupon: | 4.85%
|
| Price: | 99.543
|
| Yield: | 4.886%
|
| Spread: | Treasuries plus 190 bps
|
| Price talk: | 195 bps area, tightened from 210 bps area
|
| Make-whole call: | Treasuries plus 30 bps prior to June 15, 2034, then callable at par
|
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