DOW JONES NEWSWIRES
Viacom Inc. (VIA) plans to sell a total of $550 million in
senior notes to raise funds to repay debt.
The media company, which owns cable-TV channels such as MTV and
Comedy Central, will sell $250 million in 4.250% senior notes due
2015 at a price equal to 99.814% of the original amount and $300
million in 5.625% senior notes due 2019 at a price equal to
101.938% of the original price.
The latest 10-year notes are in addition to $250 million in
similar notes issued last month.
Viacom said proceeds of the sale, expected to close Tuesday,
would be used to repay all or part of amounts outstanding under its
revolving credit facility and/or its commercial paper program.
In August, Viacom sold $850 million in notes, which mature in
2014 and 2019, to fund a tender offer for notes due in 2011.
Many companies have been selling debt in part to pay off
soon-to-mature borrowings.
Viacom has seen its media business hurt by declining advertising
sales and has been trying to rejuvenate the performance of its film
studio, Paramount Pictures.
Its shares slid 0.5% to $28.40 in after-hours trading.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com