Viacom to Make $1.3 Billion Debt Offering

Company will use sale proceeds to pay outstanding indebtedness

Last Updated: September 30, 2016 @ 9:35 AM

Media giant Viacom announced Thursday that it has agreed to make a debt offering totaling $1.3 billion.

The company has agreed to sell $400 million in aggregate principal amount of 2.250% senior notes due 2022 at a price equal to 99.692% of the principal amount thereof (the “2022 Senior Notes”). The company will also sell $900 million in aggregate principal amount of 3.450% senior notes due 2026 at a price equal to 99.481% of the principal amount thereof (the “2026 Senior Notes” and, together with the 2022 Senior Notes, the “Senior Notes”).

The sale of the senior notes is expected to close Oct. 4.

The company said it will use the proceeds from the sale primarily to repay outstanding debt, including the repayment of $400 million aggregate principal amount of its 2.500% senior notes due December 2016, the repayment of $500 million aggregate principal amount of its 3.500% senior notes due April 2017 and borrowings under its commercial paper program.

Should any proceeds remain, they will go toward general corporate purposes.

News of the offering follows a call by parent company National Amusements for Viacom to explore a merger with CBS, bringing the companies back together. Viacom and CBS spun off from each other in 2005.

Earlier Thursday, following news of a potential merger, Viacom stock enjoyed a 4 percent uptick, to $1.30 per share. CBS, meanwhile, enjoyed a more modest 1 percent uptick.