ViacomCBS said Tuesday it’s agreed to sell $2 billion worth of debt in two tranches to raise fresh cash.
The sale of senior notes is expected to close on May 19.
ViacomCBS said in an SEC filing that it intends to use the net proceeds for the purchase of notes tendered pursuant to previously announced concurrent tender offers and for the payment of related accrued interest, premiums, fees and expenses. In other words, it’s using the cash raised by the new debt sale to refinance previous debt at lower interest rates.
ViacomCBS’ senior unsecured debt is currently rated BBB (stable) by Fitch Ratings, Baa2 (stable) by Moody’s Investors Service and BBB (negative) by S&P Global Ratings.