Viacom gets tenders for $2.5 billion notes, lifts cap, sets pricing

By Marisa Wong

Morgantown, W.Va., June 2 – Viacom Inc. announced pricing terms of its cash tender offer for up to $1 billion of notes from 12 series. Pricing was set at 2 p.m. ET on June 2.

The company began an offer for up to $750 million of the notes on May 18 but increased the cap to $1 billion on Friday.

In an earlier announcement on Friday, the company said investors had tendered about $2.5 billion of notes as of 5 p.m. ET on June 1, the early tender date.

The breakdown for the early tender results is as follows, with the notes listed in order of priority of acceptance with their respective total purchase price per $1,000 principal amount:

• $257.91 million of the $400 million 2.75% senior notes due 2019. The total consideration is $1,015.77. Pricing is based on the 1.25% Treasury due April 30, 2019 plus 80 basis points;

• $201,688,000 of the $550 million 5.625% senior notes due 2019. The total consideration is $1,078.31. Pricing is based on the 1.25% Treasury due April 30, 2019 plus 80 bps;

• $145,925,000 of the $250 million 4.5% senior debentures due 2042. The total consideration is $913.26. Pricing is based on the 3% Treasury due Feb. 15, 2047 plus 230 bps;

• $212,732,000 of the $250 million 4.875% senior debentures due 2043. The total consideration is $964.69. Pricing is based on the 3% Treasury due Feb. 15, 2047 plus 230 bps;

• $305,965,000 of the $900 million 3.45% senior notes due 2026. The total consideration is $971.69. Pricing is based on the 2.375% Treasury due May 15, 2027 plus 165 bps;

• $210,377,000 of the $400 million 2.25% senior notes due 2022. The total consideration is $979.31. Pricing is based on the 1.875% Treasury due April 30, 2022 plus 100 bps;

• $351,579,000 of the $600 million 4.85% senior debentures due 2034. The total consideration is $1,003.21. Pricing is based on the 3% Treasury due Feb. 15, 2047 plus 200 bps;

• $113,655,000 of the $300 million 3.25% senior notes due 2023. The total consideration is $1,001.25. Pricing is based on the 1.875% Treasury due April 30, 2022 plus 150 bps;

• $248,551,000 of the $550 million 5.25% senior debentures due 2044. The total consideration is $1,018.31. Pricing is based on the 3% Treasury due Feb. 15, 2047 plus 230 bps;

• $100,766,000 of the $300 million 3.125% senior notes due 2022. The total consideration is $1,008.88. Pricing is based on the 1.875% Treasury due April 30, 2022 plus 120 bps;

• $158,074,000 of the $550 million 3.875% senior notes due 2024. The total consideration is $1,015.20. Pricing is based on the 2.375% Treasury due May 15, 2027 plus 145 bps; and

• $220,334,000 of the $1.25 billion 4.25% senior notes due 2023. The total consideration is $1,047.08. Pricing is based on the 1.875% Treasury due April 30, 2022 plus 165 bps.

The total purchase price for each series includes an early tender premium of $30.00 per $1,000 principal amount of notes tendered by the early tender deadline.

The maximum purchase price will be $150 million for the 2.75% notes due 2019 and 5.625% notes due 2019, the release noted on Friday.

The tender offer will continue until 11:59 p.m. ET on June 15.

Viacom will also pay accrued interest up to but excluding the settlement date. For early tenders, settlement is planned for June 5. Final settlement will be on June 16.

Securities will be accepted for purchase in order of priority, and all securities tendered before the early deadline will be accepted ahead of those tendered afterwards.

Citigroup Global Markets Inc. (212 723-6106 or 800 558-3745), Deutsche Bank Securities Inc. at (212 250-2955 or 866 627-0391) and Wells Fargo Securities, LLC (704 410-4760 or 866 309-6316) are dealer managers.

Global Bondholder Services Corp. (866 470-3900, 212 430-3774 or contact@gbsc-usa.com) is information agent and tender agent.

Viacom is a New York-based media company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.