Paramount Global to offer fixed-to-fixed junior subordinated debentures due 2062

By William Gullotti

Buffalo, N.Y., March 24 – Paramount Global is preparing an offering of fixed-to-fixed junior subordinated debentures due 2062 (Baa3/BB+) via four bookrunners, according to a 424B3 filing with the Securities and Exchange Commission.

The fixed-rate coupon will reset in 2027, 2032 and 2042.

If no event of default has occurred, Paramount will be able to exercise an interest payment deferral option, which may last up to five years and be invoked on more than one occasion.

The junior debentures will have a make-whole call followed by a par call, which may be exercised in whole or in part.

The debentures are also callable in whole at any time at par if a tax event occurs, at 102 if a rating agency event occurs and at 101 if a change of control event occurs.

If Paramount does not elect to redeem the debentures following a relevant event, the interest rate will be increased by an additional 5%.

BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC are the joint bookrunning managers for the offering.

The trustee is Deutsche Bank Trust Co. Americas.

Shearman & Sterling LLP is acting as counsel to the issuer. Hughes Hubbard & Reed LLP is counsel for the bookrunners.

As of Dec. 31, Paramount had $16.5 billion of outstanding senior debt ranking ahead of the debentures.

Proceeds will be used for general corporate purposes, including the possible repayment of existing debt.

The media and entertainment company, formerly called ViacomCBS Inc., is based in New York.

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