By Cristal Cody
Eureka Springs, Ark., Sept. 29 – Viacom Inc. priced $1.3 billion of senior notes (Baa3/BBB-/BBB) in two tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $400 million of 2.25% notes due Feb. 4, 2022 at 99.692 to yield 2.312%. The notes priced with a spread of Treasuries plus 120 basis points.
Viacom priced $900 million of 3.45% 10-year notes at 99.481 to yield 3.512%, or Treasuries plus 195 bps.
The notes priced on the tight side of guidance.
Citigroup Global Markets Inc., BofA Merrill Lynch and Morgan Stanley & Co. LLC were the bookrunners.
Proceeds will be used to repay debt, including the company’s $400 million of 2.5% senior notes due December 2016, $500 million of 3.5% senior notes due April 2017 and borrowings under its commercial paper program, as well as for general corporate purposes.
The issuer held a roadshow for the offering on Tuesday and Wednesday.
Viacom is a New York City-based diversified media company with interests focused in cinema and cable television.
| Issuer: | Viacom Inc.
|
| Amount: | $1.3 billion
|
| Description: | Senior notes
|
| Bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, Morgan Stanley & Co. LLC
|
| Trade date: | Sept. 29
|
| Settlement date: | Oct. 4
|
| Change-of-control put: | 101%
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 4, 2022
|
| Coupon: | 2.25%
|
| Price: | 99.692
|
| Yield: | 2.312%
|
| Spread: | Treasuries plus 120 bps
|
| Price guidance: | Treasuries plus 125 bps area, plus or minus 5 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; on or after Jan. 4, 2022 at par
|
|
|
| 10-year notes
|
| Amount: | $900 million
|
| Maturity: | Oct. 4, 2026
|
| Coupon: | 3.45%
|
| Price: | 99.481
|
| Yield: | 3.512%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 200 bps area, plus or minus 5 bps
|
| Call features: | Make-whole call at Treasuries plus 30 bps; on or after July 4, 2026 at par
|
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