Paramount seeks to raise $1 billion in new subordinated loan offering

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Paramount Global announced Thursday evening that it would sell $1.0 billion of junior subordinated debt. The sale is expected to close on March 29

The funds will go towards “broad corporate purposes, including eventual repayment of existing debt,” the company said in a statement.

BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and JP Morgan Securities LLC are serving as joint structuring agents and book managers for the offering, the company said.

The announcement comes just over two years after the company – then still known as ViacomCBS – sold $2 billion in debt in part to refinance it at a lower interest rate.

Below is the full statement

Paramount Global (NASDAQ: PARA; PARAA) announced today that it has agreed to sell for an aggregate principal amount of $1.0 billion of 6.375% fixed-to-fixed senior subordinated debentures due in 2062 at a price equal to 100.000% of their principal amount (the “Debentures”). The sale of the Debentures is expected to close on March 29, 2022, subject to customary closing conditions.

Paramount Global intends to use the net proceeds of the offering, after deducting underwriting discounts and commissions and other offering-related fees and expenses, for general corporate purposes, including the eventual reimbursement of existing debt.

The structuring agents and joint bookrunners for the offering are BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and JP Morgan Securities LLC.

The debentures, which are subordinated unsecured debt of Paramount Global, are expected to be rated BB+ (stable) by S&P Global Ratings, BB+ (stable) by Fitch Ratings and Baa3 (stable) by Moody’s Investors Service.*

The terms and conditions of the Debentures are set forth in a prospectus and related prospectus supplement, which may be obtained by contacting Paramount Global Investor Relations at (877) 227-0787 or by written request to Paramount Global, 1515 Broadway, 52nd Floor, New York, New York 10036, Attention: Investor Relations.

This press release does not constitute an offer or solicitation to sell securities. It also does not authorize the sale of securities in any jurisdiction or state where such offer, solicitation or sale would be unlawful prior to registration or qualification under securities laws.

*A security rating does not recommend that you buy, sell, hold or trade securities. It may also be revised and withdrawn at any time.

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