Published on 3/27/2020 in the Prospect News Investment Grade Daily.
New Issue: ViacomCBS prices $2.5 billion of senior notes in two tranches
By Cristal Cody
Tupelo, Miss., March 27 – ViacomCBS Inc. priced $2.5 billion of senior notes (Baa2/BBB/BBB) in two tranches on Friday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The company sold $1.25 billion of 4.75% five-year notes at 99.498 to yield 4.86%, or a spread of Treasuries plus 445 basis points.
A $1.25 billion tranche of 4.95% notes due Jan. 15, 2031 priced at 98.036 to yield 5.191% and a Treasuries plus 445 bps spread.
Both tranches were initially talked to print in the Treasuries plus 460 bps area.
BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA LLC were the bookrunners.
Proceeds will be used for general corporate purposes, including debt repayment.
The media and entertainment company is based in New York.
| Issuer: | ViacomCBS Inc.
|
| Amount: | $2.5 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Mizuho Securities USA LLC
|
| Co-managers: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, RBC Capital Markets, LLC, U.S. Bancorp Investments, Inc., SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., TD Securities (USA) LLC, Banca IMI SpA, BNY Mellon Capital Markets, LLC, ICBC Standard Bank plc, Siebert Williams Shank & Co., LLC, SunTrust Robinson Humphrey, Inc., Academy Securities, Inc., Loop Capital Markets LLC, R. Seelaus & Co., LLC and Samuel A. Ramirez & Co., Inc.
|
| Trade date: | March 27
|
| Settlement date: | April 1
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| Notes due 2025
|
| Amount: | $1.25 billion
|
| Maturity: | May 15, 2025
|
| Coupon: | 4.75%
|
| Price: | 99.498
|
| Yield: | 4.86%
|
| Spread: | Treasuries plus 445 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before April 15, 2025; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 460 bps area
|
|
|
| Notes due 2031
|
| Amount: | $1.25 billion
|
| Maturity: | Jan. 15, 2031
|
| Coupon: | 4.95%
|
| Price: | 98.036
|
| Yield: | 5.191%
|
| Spread: | Treasuries plus 445 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps before Oct. 15, 2030; thereafter at par
|
| Change-of-control put: | 101%
|
| Price guidance: | Treasuries plus 460 bps area
|
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