Viacom Announces $1.3 Billion Subordinated Debt Offering
February 23 2017 - 6:45PM
Business Wire
Viacom Inc. (NASDAQ:VIAB, VIA) today announced that it has
agreed to sell $650 million in aggregate principal amount
of 5.875% fixed-to-floating rate junior subordinated debentures due
2057 at a price equal to 100.000% of the principal amount thereof
(the “NC5 Debentures”) and $650 million in aggregate
principal amount of 6.250% fixed-to-floating rate junior
subordinated debentures due 2057 at a price equal to 100.000% of
the principal amount thereof (the “NC10 Debentures” and, together
with the NC5 Debentures, the “Debentures”). The sale of the
Debentures is expected to close on February 28, 2017, subject
to customary closing conditions.
Viacom intends to use the net proceeds from the offering
primarily for the repayment of outstanding indebtedness, which
includes the repayment, in whole or in part, of up to $500 million
aggregate principal amount of its 6.125% senior notes due October
2017, up to $500 million aggregate principal amount of its 2.500%
senior notes due September 2018, up to $400 million aggregate
principal amount of its 2.200% senior notes due April 2019 and
borrowings under its commercial paper program, and, to the extent
that any proceeds remain, for general corporate purposes.
The joint structuring agents and book-running managers for the
offering are Merrill Lynch, Pierce, Fenner & Smith Incorporated
and Morgan Stanley & Co. LLC.
The Debentures, which constitute unsecured subordinated
indebtedness of Viacom, are expected to be rated BB (negative) by
S&P Global Ratings, BB+ (negative) by Fitch Ratings and Ba1
(stable) by Moody's Investors Service.*
The terms and conditions of the Debentures are set forth in a
prospectus, which can be obtained by contacting
Viacom Investor Relations at 1-800-516-4399 or by written
request to Viacom Inc., 1515 Broadway, 52nd
Floor, New York, New York 10036, Attn: Investor
Relations.
*A securities rating is not a recommendation to buy, sell or
hold securities and may be subject to revision or withdrawal at any
time.
About Viacom
Viacom is home to premier global media brands that create
compelling television programs, motion pictures, short-form
content, apps, games, consumer products, social media experiences,
and other entertainment content for audiences in more than 180
countries. Viacom's media networks, including Nickelodeon, Comedy
Central, MTV, VH1, Spike, BET, CMT, TV Land, Nick at Nite, Nick
Jr., Logo, Nicktoons, TeenNick, Channel 5 (UK), Telefe (Argentina)
and Paramount Channel, reach over 3.9 billion cumulative television
subscribers worldwide. Paramount Pictures is a major global
producer and distributor of filmed entertainment.
For more information about Viacom and its businesses, visit
www.viacom.com.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains both historical and forward-looking
statements. All statements that are not statements of historical
fact are, or may be deemed to be, forward-looking statements.
Forward-looking statements reflect our current expectations
concerning future results, objectives, plans and goals, and involve
known and unknown risks, uncertainties and other factors that are
difficult to predict and which may cause future results,
performance or achievements to differ. These risks, uncertainties
and other factors include, among others: the effect of recent
changes in management and our board of directors; the ability of
our recently-announced strategic initiatives to achieve their
operating objectives; the public acceptance of our brands,
programs, motion pictures and other entertainment content on the
various platforms on which they are distributed; the impact of
inadequate audience measurement on our program ratings and
advertising and affiliate revenues; technological developments and
their effect in our markets and on consumer behavior; competition
for content, audiences, advertising and distribution; the impact of
piracy; economic fluctuations in advertising and retail markets,
and economic conditions generally; fluctuations in our results due
to the timing, mix, number and availability of our motion pictures
and other programming; the potential for loss of carriage or other
reduction in the distribution of our content; changes in the
Federal communications or other laws and regulations; evolving
cybersecurity and similar risks; other domestic and global
economic, business, competitive and/or regulatory factors affecting
our businesses generally; and other factors described in our news
releases and filings with the Securities and Exchange Commission,
including but not limited to our 2016 Annual Report on Form 10-K
and reports on Form 10-Q and Form 8-K. The forward-looking
statements included in this document are made only as of the date
of this document, and we do not have any obligation to publicly
update any forward-looking statements to reflect subsequent events
or circumstances.
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version on businesswire.com: http://www.businesswire.com/news/home/20170223006823/en/
Viacom Inc.Press:Alex Rindler, 212-846-4337Senior
Manager, Viacom Corporate
Communicationsalex.rindler@viacom.comorInvestors:James
Bombassei, 212-258-6377Senior Vice President, Investor
Relationsjames.bombassei@viacom.comorKareem Chin, 212-846-6305Vice
President, Investor Relationskareem.chin@viacom.com
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