Viacom Announces a Cash Tender Offer for Up to $500 Million of its Outstanding 6.25% Senior Notes Due 2016

Feb 14, 2011
By ViacomCBS Staff

Viacom Inc. (NYSE: VIA, VIA.B) today announced that it will commence a cash tender offer for up to $500 million of its outstanding 6.25% Senior Notes due 2016 (the "2016 Notes"). The tender offer is scheduled to expire at midnight on March 14, 2011, unless the offer is extended or terminated.

The terms and conditions of the tender offer are set forth in an Offer to Purchase dated February 14, 2011 (the "Offer to Purchase") and related Letter of Transmittal.

The following table sets forth some of the terms of the tender offer:




Title of


Aggregate Principal
Amount Outstanding










6.25% Senior
Notes due 2016


2.00% U.S.
Treasury due

PX6 90 $30


(1)Includes the early tender premium per $1,000 principal amount of 2016 Notes as set forth in this table.
(2)Per $1,000 principal amount of 2016 Notes tendered and accepted for purchase.

As described in the Offer to Purchase, Viacom expects to accept for payment a portion of 2016 Notes that are validly tendered and not validly withdrawn at or before 5:00 p.m.,New York City time, on February 28, 2011, unless extended (the "Early Tender Date"), on a date promptly following the Early Tender Date.

Tendered 2016 Notes may be withdrawn at or before 5:00 p.m., New York City time, on February 28, 2011 (the "Withdrawal Date"), but may not be withdrawn after the Withdrawal Date, except in certain limited circumstances where Viacom determines that additional withdrawal rights are required by law. Withdrawn 2016 Notes may be re-tendered at any time prior to the expiration of the tender offer. The tender offer is subject to certain customary conditions and the condition that Viacom has consummated an offering of its senior notes on terms and conditions satisfactory to Viacom. The tender offer is not conditioned on the tender of a minimum principal amount of 2016 Notes. Viacom may amend, extend or, subject to certain conditions, terminate the tender offer at any time.

Holders that validly tender on or prior to the Early Tender Date and do not validly withdraw their 2016 Notes on or prior to the Withdrawal Date and whose 2016 Notes are accepted for purchase will receive consideration based on a fixed spread over the reference treasury security rate, which includes the early tender premium for each$1,000 principal amount of 2016 Notes accepted for purchase. Holders that validly tender after the Early Tender Date but on or prior to the expiration of the tender offer and whose 2016 Notes are accepted for purchase will receive consideration based on a fixed spread over the reference treasury security rate minus the early tender premium for each$1,000 principal amount of 2016 Notes accepted for purchase.

With respect to any 2016 Notes accepted for purchase in the tender offer, Viacom will pay accrued and unpaid interest up to, but not including, the applicable date of payment for the purchased 2016 Notes.

For this tender offer, Viacom has retained BofA Merrill Lynch, Mitsubishi UFJ Securities, Morgan Stanley, and Wells Fargo Securities to serve as dealer managers, and Global Bondholder Services Corporation to serve as the information agent and depositary.

Requests for the Offer to Purchase and related documents may be directed to Global Bondholder Services Corporation at (866) 873-6300 (U.S. toll free) or at (212) 430-3774 (collect), or in writing to 65 Broadway - Suite 404, New York, NY 10006, Attention: Corporate Actions. Questions regarding the tender offer may be directed to Merrill Lynch, Pierce, Fenner & Smith Incorporated at (888) 292-0070 (U.S. toll free) or (980)-388-9217 (collect), Mitsubishi UFJ Securities (USA), Inc. at (877) 649-6848 (U.S. toll free) or (212)-405-7440 (collect), Morgan Stanley & Co. Incorporated at (800) 624-1808 (U.S. toll free) or (212) 761-0858 (collect), or Wells Fargo Securities, LLC at (866) 309-6316 (U.S. toll free) or (704) 715-8341 (collect).

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell with respect to any securities. The solicitation of offers to buy the 2016 Notes is only being made pursuant to the terms of the Offer to Purchase and the related Letter of Transmittal. The offer is not being made in any jurisdiction in which the making or acceptance thereof would not be in compliance with the securities, blue sky or other laws of such jurisdiction. None of Viacom, the dealer managers, the depositary or the information agent is making any recommendation as to whether or not holders should tender their 2016 Notes in connection with the tender offer.

About Viacom

Viacom is home to the world's premier entertainment brands. Through its BET Networks, MTV Networks and Paramount Pictures divisions, Viacom connects with audiences through compelling content across television, motion picture, online and mobile platforms in more than 160 countries and territories. With approximately 170 media networks reaching more than 600 million global subscribers, Viacom's leading brands include MTV, VH1, CMT, Logo, BET, CENTRIC, Nickelodeon, Nick Jr., TeenNick, Nicktoons, Nick at Nite, COMEDY CENTRAL, TV Land, Spike TV and Tr3s. Paramount Pictures, America's oldest film studio and creator of many of the most beloved motion pictures, continues today as a major global producer and distributor of filmed entertainment. Viacom operates more than 500 branded digital media properties, including several of the world's most popular destinations for entertainment, community and casual online gaming.

For more information about Viacom and its businesses, visit

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