Viacom cuts debt by $3 billion in 2017, $1 billion in fourth quarter

By Devika Patel

Knoxville, Tenn., Feb. 8 – Viacom Inc. plans to continue reducing debt after cutting gross debt by 23% in the past year and redeeming $1 billion of notes and debentures during the last quarter.

“Since we announced our strategic plan a year ago, including our commitment to reduce leverage and maintain investment-grade metrics, we have made meaningful progress, reducing our gross debt by approximately $3 billion or 23%,” executive vice president and chief financial officer Wade Davis said on the company’s fourth quarter and year ended Dec. 31, 2017 earnings conference call on Thursday.

“During the quarter, we used our excess cash to redeem over $1 billion of senior notes and debentures.

“Our debt was principally fixed-rate with a weighted average cost of under 5%.

“We plan to continue to pursue opportunities to de-lever over the course of fiscal 2018 including using our excess free cash flow to redeem debt,” Davis said.

At Dec. 31, 2017, total debt outstanding was $10.19 billion, compared with $11.12 billion at Sept. 30, 2017, a reduction of $930 million.

The company’s cash balance was $394 million at Dec. 31, 2017, a decrease from $1.39 billion at Sept. 30, 2017.

Viacom is a New York-based media company.

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