Conglom to pay down its debt
Viacom will borrow $750 million to pay down debt, the company announced Tuesday.The media conglom said it has agreed to sell $500 million in 6.125% senior notes due in 2017 and $250 million in senior debentures due in 2037 and paying 6.75% annual interest. The sale of both issues of unsecured debt is expected to close Friday. Company said it will use the proceeds to repay all or part of what it owes on its revolving credit facility and its commercial paper program. Company is, in effect, spreading part of its current debt over a longer repayment period and freeing up borrowing capacity that can be used for acquisitions or capital expenses. Sole book manager for the new debt offering is Deutsche Bank Securities, which also serves as joint lead manager with Greenwich Capital Markets. Credit Suisse Securities is senior co-manager and nabCapitalSecurities is co-manager on the deal.