By Andrea Heisinger
New York, March 11 - Viacom Inc. priced $550 million of senior notes (Baa1/BBB+/BBB+) in two maturities on Monday, according to a market source and an FWP filing with the Securities and Exchange Commission.
The size was increased from $500 million.
A $300 million tranche of 3.25% 10-year notes sold at 99.148 to yield 3.351% with a spread of Treasuries plus 130 basis points. Pricing was tighter than talk in the 145 bps area.
There is a make-whole call at Treasuries plus 20 bps until Dec. 15, 2022, with a par call after that date.
A $250 million tranche of 4.875% 30-year bonds priced at 99.474 to yield 4.909% with a spread of Treasuries plus 165 bps. Pricing was 10 bps tighter than guidance in the 175 bps area.
The bonds feature a make-whole call at Treasuries plus 25 bps until Dec. 15, 2042 and a par call afterward.
The securities include a change-of-control put at 101%.
Bookrunners were BNP Paribas Securities Corp., Goldman Sachs & Co. and J.P. Morgan Securities LLC.
Proceeds will be used for general corporate purposes, including repayment of outstanding debt that includes borrowings under a commercial paper program, and the repurchase of shares under a share repurchase program.
Viacom last tapped the U.S. bond market with a $250 million sale of 4.375% 30-year bonds priced at 178 bps over Treasuries on Nov. 16, 2012.
The entertainment company is based in New York City.
| Issuer: | Viacom Inc.
|
| Issue: | Senior notes
|
| Amount: | $550 million, increased from $500 million
|
| Bookrunners: | BNP Paribas Securities Corp., Goldman Sachs & Co., J.P. Morgan Securities LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 11
|
| Settlement date: | March 14
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $300 million
|
| Maturity: | March 15, 2023
|
| Coupon: | 3.25%
|
| Price: | 99.148
|
| Yield: | 3.351%
|
| Spread: | Treasuries plus 130 bps
|
| Call: | Make-whole at Treasuries plus 20 bps to Dec. 15, 2022, par call after
|
| Price talk: | 145 bps area
|
|
|
| 30-year bonds
|
| Amount: | $250 million
|
| Maturity: | June 15, 2043
|
| Coupon: | 4.875%
|
| Price: | 99.474
|
| Yield: | 4.909%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Dec. 15, 2042, par call after
|
| Price talk: | 175 bps area
|
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