(The item "Viacom To Offer $750M In 7-Year Notes, Buy Back Notes
Due 2011," published at 9:14 a.m. EDT, incorrectly called the notes
seven-year notes in the first paragraph and headline. A corrected
version follows.)
DOW JONES NEWSWIRES
Viacom Inc. (VIA) will offer $750 million in senior notes due
2014 and 2019 and use the proceeds to buy back its 5.75% senior
notes due 2011.
The media company, which owns cable-TV channels such as MTV and
Comedy Central, has seen its media business hurt by declining
advertising sales and has been trying to rejuvenate the performance
of its film studio, Paramount Pictures.
The company joins a host of others taking advantage of renewed
interest in the debt market to raise cash.
Last month, Viacom reported it had $7.37 billion in total debt
outstanding and that its cash balance was $250 million, down from
$750 million as of Dec. 31.
The company said if any proceeds remain it will repay borrowings
under its credit facility or its commercial paper program. Viacom
will pay $1,061.25 for every $1,000 principal notes tendered to its
buyback offer.
The tender offer will expire Aug. 27 at 5 p.m. EDT (2100
GMT).
Viacom's shares closed Tuesday at $24.85 and haven't traded
premarket.
-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353;
kerry.benn@dowjones.com
