| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers V > Headlines for Viacom Inc. > News item |
Viacom makes ‘meaningful progress’ on debt cuts, more reduction ahead
By Devika Patel
Knoxville, Tenn., Nov. 16 – Viacom Inc. plans to continue reducing its debt and de-lever in its bid to keep a strong balance sheet and maintain its investment-grade metrics.
Since Feb. 9, the company has cut debt by about $2 billion.
“As part of our commitment to a strong balance sheet and maintaining investment-grade metrics, since February we paid down approximately $2 billion of debt, a reduction of 15%,” president and chief executive officer Robert Bakish said on the company’s fourth quarter and year ended Sept. 30 earnings conference call on Thursday.
“This is an area we continue to be focused on and you will see further de-levering over the course of 2018,” Bakish said.
The debt that remains is fixed-rate with a weighted average cost of 4.9%.
The company plans to continue deleveraging in fiscal 2018.
“Since we announced our strategic plan on Feb. 9 [of] our commitment to reducing leverage and maintaining investment-grade metrics, we have made meaningful progress, reducing gross debt by approximately $2 billion, or 15%,” executive vice president and chief financial officer Wade Davis said on the call.
“The terms of our debt at quarter-end was a fixed-rate with a weighted average cost of 4.9%.
“Over the course of fiscal 2018, we will continue to pursue opportunities to de-lever,” Davis said.
At Sept. 30, total debt was $11.12 billion. The company has reduced debt by approximately $2 billion, or 15%, since announcing its plan to de-lever its balance sheet on Feb. 9.
The company’s cash balance was $1.39 billion at Sept. 30, an increase from $379 million at Sept. 30, 2016.
During the year, free cash flow increased $278 million, or 23% to $1.48 billion and operating free cash flow increased $311 million, or 26%, to $1.51 billion.
Viacom is a New York-based media company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.