ViacomCBS To Raise $3.06B From Secondary Common And Preferred Stock Offering

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Media and entertainment company ViacomCBS Inc (NASDAQ: VIACpriced concurrent offerings of 20 million common stock at $85 per share and 10 million preferred stock at $100 per share in a secondary public offering.

  • The common stock offer price signifies a 6.8% discount to the Tuesday closing price.

  • The net proceeds from the common stock offering and the preferred stock offering would be $1.67 billion and $983.09 million, respectively.

  • ViacomCBS granted the underwriters a 30-day option to purchase additional 3 million common stock and 1.5 million preferred stock.

  • ViacomCBS intends to use the combined net proceeds from the offerings of $2.65 billion for general corporate purposes, including streaming investments.

  • Each preferred stock would convert into between 1.0013 and 1.1765 ViacomCBS common stock on April 1, 2024.

  • ViacomCBS intends to apply to list the preferred stock under the symbol “VIACP” on the Nasdaq.

  • The preferred stock would be payable on a cumulative basis at an annual rate of 5.75% of the liquidation preference of $100 per share.

  • Morgan Stanley, J.P. Morgan, Citigroup, Goldman Sachs & Co. LLC, Mizuho Securities, and Siebert Williams Shank are the joint book-running managers for the offerings.

  • ViacomCBS’ cash and cash equivalents amounted to $3 billion as of December 31, 2020. The long-term debt balance amounted to $19.7 billion.

  • Recently, ViacomCBS redeemed $2 billion senior notes.

  • VIAC stock has gained 144.9% year-to-date.

  • Price action: VIAC shares traded lower by 8.11% at $83.85 in the premarket session on the last check Wednesday.

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