Paramount Global announced Thursday evening that it will sell $1.0 billion of junior subordinated debt. The sale is expected to close March 29,
The funds will go towards “general corporate purposes, including the possible repayment of existing indebtedness,”The company made the announcement in a statement.
BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC serve as joint structuring agents and book-running managers for the offering, the company said.
The announcement comes just over two years after the company — then still known as ViacomCBS — sold off $2 billion in debt in part to refinance it at a lower interest rate.
Below is the full statement
Paramount Global (NASDAQ: PARA; PARAA) today announced that it has agreed to sell $1.0 billion in aggregate principal amount of 6.375% fixed-to-fixed rate junior subordinated debentures due 2062 at a price equal to 100.000% of the principal amount thereof (the “Debentures”). The sale of the Debentures is expected to close on March 29, 2022, subject to customary closing conditions.
Paramount Global intends to use the net proceeds from the offering, after deducting underwriting discounts and commissions and other fees and expenses related to the offering, for general corporate purposes, including the possible repayment of existing indebtedness.
The joint structuring agents and book-running managers for the offering are BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC.
The Debentures, which constitute unsecured subordinated indebtedness of Paramount Global, are expected to be rated BB+ (stable) by S&P Global Ratings, BB+ (stable) by Fitch Ratings and Baa3 (stable) by Moody’s Investors Service.*
The terms and conditions of the Debentures are set forth in a prospectus and related prospectus supplement, which can be obtained by contacting Paramount Global Investor Relations at (877) 227-0787 or by written request to Paramount Global, 1515 Broadway, 52nd Floor, New York, New York 10036, Attn: Investor Relations.
This press release does not constitute an offer or solicitation to sell securities. It also does not permit the sale of securities in any jurisdiction or state where such an offer, solicitation or sale would be illegal prior to registration or qualification according to the securities laws.
*A securities rating does not recommend that you buy, sell, hold or trade securities. It may also be subject to revision and withdrawal at any moment.