This looks like a smart move considering how low interest rates are now. Just before making this announcement, Viacom said that it’s also redeeming $750M in senior notes that pay 6.85%.

NEW YORK, Dec. 7, 2011 — Viacom Inc. (NASDAQ: VIA, VIAB) today announced that it has agreed to sell $400 million in aggregate principal amount of 2.500% senior notes due 2016 (the “2016 Senior Notes”) at a price equal to 99.366% of the principal amount thereof and $600 million in aggregate principal amount of 3.875% senior notes due 2021 (the “2021 Senior Notes” and, together with the 2016 Senior Notes, the “Senior Notes”) at a price equal to 98.361% of the principal amount thereof. The sale of the Senior Notes is expected to close on December 12, 2011. Viacom intends to use the net proceeds from the offering for the repayment of outstanding indebtedness and, to the extent that any proceeds remain, for general corporate purposes, including, but not limited to, the repurchase of shares under its share repurchase program. Viacom’s senior unsecured debt is currently rated BBB+ by Standard & Poor’s and Fitch, and rated Baa1 by Moody’s Investors Service.