Viacom said it agreed to sell $1.3 billion worth of senior notes in order to pay off existing, expiring debt obligations.
The ailing media company recently cut its dividend to conserve cash. National Amusements, Sumner and Shari Redstone’s family holding company that controls Viacom, having ousted long-time Viacom CEO Philippe Dauman, is encouraging the company to discuss merging with CBS, which it also controls.
The new debt includes $400 million in notes due in 2022 that pay 2.25% interest and $900 million in senior notes due 2026 that pay 3.45% interest.
The notes that will be paid off include $400 million in notes paying 2.5% due December 2016 and $500 million in notes due April 2007 that pay 3.5%.
Viacom's senior unsecured debt is currently rated BBB- (negative) by S&P Global Ratings, BBB (negative) by Fitch Ratings, and Baa3 (stable) by Moody's Investors Service.