http://www.businessweek.com/news/2013-08-12/viacom-said-to-plan-benchmark-bonds-in-u-dot-s-dot-with-three-part-sale

Bloomberg News

Viacom Raises $3 Billion in Its Biggest Bond Sale in Seven Years

August 12, 2013

Viacom Inc. (VIAB:US), the owner of the Paramount film studios and cable networks Comedy Central and BET, sold $3 billion of bonds in its biggest offering in about seven years.

The company (VIAB:US) issued $500 million of 2.5 percent, five-year securities to yield 125 basis points more than similar-maturity Treasuries and $1.25 billion each of 4.25 percent, 10-year debt at a relative yield of 178 basis points and 5.85 percent, 30-year bonds at a 220 basis-point spread, according to data compiled by Bloomberg. The sale is its largest since offering $5.5 billion in four parts in September 2006.

The debt is rated Baa2 by Moody’s Investors Service and BBB at Standard & Poor’s, Bloomberg data show. Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Royal Bank of Scotland Group Plc managed the offering for the New York-based company, the data show. Proceeds will be used for general corporate purposes.

Viacom’s $300 million of 3.25 percent securities due March 2023 traded at 92.68 cents on the dollar to yield 4.18 percent on Aug. 8, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

To contact the reporter on this story: Sarika Gangar in New York at sgangar@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net


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