ViacomCBS Redeems $800 Million in Bonds Due by 2021

Trevor Noah, CEO of Viacom Robert M. Bakish and Sherri Redstone attend as  ViacomCBS Inc. - Getty -H 2020
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The senior notes redemptions follows the studio raising $2.5 billion in new debt due in 2025, in part to repay "outstanding indebtedness."

ViacomCBS on Friday said it will redeem $800 million in senior secured notes that mature in 2021.

The studio said it will pay off all of its outstanding 4.30 percent senior notes due on Feb. 15, 2021, and with a redemption date of May 4, 2020, and all of its outstanding 4.5 percent senior notes due March 1, 2021, and to be redeemed by May 18, 2020.

The move follows ViacomCBS on March 27 indicating it had raised $2.5 billion with an eye to reducing its debt obligations. ViacomCBS last month agreed to sell $1.25 billion in 4.750 percent senior notes due in 2025, and another $1.25 billion in 4.950 percent senior notes due in 2031.

The studio at the time said the net proceeds from the new debt offering would be used for general corporate purposes, "which may include repayment of outstanding indebtedness."

The balance sheet move to repay nearer-term debt at ViacomCBS follows the studio also indicating the new coronavirus pandemic could have a "material" impact on its results, while it withdrew its 2020 financial guidance.