Viacom tenders for up to $500 million of 6.25% senior notes due 2016

By Susanna Moon

Chicago, Feb. 14 - Viacom Inc. announced a cash tender offer for up to $500 million of its $1.5 billion outstanding 6.25% senior notes due 2016.

Pricing for each $1,000 principal amount of notes will be based on the 2% U.S. Treasury note due Jan. 31, 2016 plus a fixed spread of 90 basis points.

The total payment will include a premium of $30 per $1,000 principal amount of notes tendered by 5 p.m. ET on Feb. 28, the early tender date.

Holders who tender notes after the early tender date but by midnight ET on March 14, the expiration date, will receive the total payment less the premium.

Viacom also will pay accrued interest up to but not including the payment date.

Tendered notes may be withdrawn at any before 5 p.m. ET on Feb. 28.

The tender offer is conditioned on Viacom completing an offering of senior notes but does not require the tender of a minimum principal amount of notes.

Merrill Lynch, Pierce, Fenner & Smith Inc. (888 292-0070 or collect 980 388-9217), Mitsubishi UFJ Securities (USA), Inc. (877 649-6848 or collect 212 405-7440), Morgan Stanley & Co. Inc. (800 624-1808 or collect 212 761-0858) and Wells Fargo Securities, LLC (866 309-6316 or collect 704 715-8341) are the dealer managers. Global Bondholder Services Corp. (attn: corporate actions, 866 873-6300 or collect at 212 430-3774) is the information agent and depositary.

The entertainment and broadcasting company is based in New York.

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