Viacom plans 40-year fixed-to-floating notes via BofA, Morgan Stanley

By Devika Patel

Knoxville, Tenn., Feb. 21 – Viacom Inc. intends to price an offering of fixed-to-floating rate junior subordinated debentures due 2057, according to a 424B3 filed with the Securities and Exchange Commission.

Interest will accrue at a fixed rate for the first 10 years and at a rate based on three-month Libor beginning in 2027.

The notes are non-callable for the first 10 years and then are callable at par.

BofA Merrill Lynch and Morgan Stanley & Co. LLC are the bookrunners.

The New York City-based diversified media company plans to use the proceeds from this offering to repay debt, including $500 million of Viacom’s 6.125% senior notes due October 2017, $500 million of its 2.5% senior notes due September 2018 and borrowings under the company’s commercial paper program. Any remaining proceeds will be used for general corporate purposes.

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