The studio is buying near-term CBS corporate debt set to mature as it navigates the new coronavirus pandemic.
ViacomCBS on Tuesday said it has launched a cash tender offer for up to $1 billion to purchase outstanding debt securities.
The Hollywood studio, led by CEO Bob Bakish, is the latest entertainment industry company to restructure its debt load amid the fallout from the coronavirus crisis. ViacomCBS said the cash tender offer aims to pick up $1 billion in debt originally issued by CBS and CBS Broadcasting, both predecessors of the newly combined ViacomCBS entity.
The near-term senior notes are due from 2021 to 2023, and the tender offer is also targeting and the 5.875 percent of junior subordinated debentures, due in 2057 and capped at $130 million in total redemptions.
ViacomCBS in earlier announcements said it has used the net proceeds from new debt offerings "for general corporate purposes, which may include repayment of outstanding indebtedness."
The studio on April 14 said it redeemed $800 million in senior secured notes that mature in 2021. In an April 27 statement it said the new coronavirus pandemic could have a "material" impact on its future financial results, withdrew its 2020 financial guidance and said it was planning "cost savings initiatives" to offset some of the expected revenue losses.
