Add Viacom to the growing list of companies hitting the credit markets to take advantage of today’s low interest rates. The company just announced two initiatives: It will sell $300M of senior notes due in 2023 that pay 3.25% a year in interest, and $250M in senior debentures due in 2043 that offer 4.875% in interest. The company says that the cash will be used for general corporate purposes including “repayment of outstanding indebtedness and the repurchase of shares” under its current program. The company said in January that it had $3.3B left in its $10B repurchase authorization. Other media companies that have borrowed cash recently include Disney, Netflix, Coinstar, Regal, and Cinemark. BNP Paribas, Goldman Sachs, J.P. Morgan Securities, and RBC Capital Markets will manage the offering expected to close later this week.
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This article was printed from http://www.deadline.com/2013/03/viacom-borrow-restructure-debt-repurchase-shares/
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