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

Media and entertainment company ViacomCBS Inc (NASDAQ: VIAC) priced 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.