ViacomCBS talks $1 billion mandatory convertible preferreds to yield 5.25%-5.75%, up 17.5%-22.5%

By Abigail W. Adams

Portland, Me., March 22 – ViacomCBS Inc. plans to price $1 billion par-of-$100 three-year series A mandatory convertible preferred stock after the market close on Tuesday with price talk for a dividend of 5.25% to 5.75% and an initial conversion premium of 17.5% to 22.5%.

Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC are bookrunners for the registered offering, which carries a greenshoe of $150 million.

The preferred stock is convertible into the company’s class B common stock.

Concurrently, the company plans to price a secondary offering of $2 billion of its class B common stock.

The secondary offering carries a greenshoe of $300 million.

Proceeds from the combined offerings will be used for general corporate purposes, including investments in streaming.

ViacomCBS is a New York-based global media and entertainment platform.

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