Viacom Launches Debt Offering

By John Eggerton
( Broadcasting & Cable )
published

Viacom announced Monday it was launching a $3 billion debt offering, spread over 30 years, to pay off some more expensive debt but principally to buy back Viacom stock.

The company signaled on a recent earnings call that it would be increasing its level of debt. The stock buyback means the company thinks the stock is cheap, and it also saves on paying dividends, since it will be paying the money to itself.

The new debt is in three tranches, $500 million due 2018, $1.25 billion due 2023, and $1.25 billion due in 2043. The sale is expected to close Aug. 19.

John Eggerton
John Eggerton

Contributing editor John Eggerton has been an editor and/or writer on media regulation, legislation and policy for over four decades, including covering the FCC, FTC, Congress, the major media trade associations, and the federal courts. In addition to Multichannel News and Broadcasting + Cable, his work has appeared in Radio World, TV Technology, TV Fax, This Week in Consumer Electronics, Variety and the Encyclopedia Britannica.