CORRECT:Viacom To Offer $750 Million In Notes, Buy Back Notes Due 2011

(The item "Viacom To Offer $750M In 7-Year Notes, Buy Back Notes Due 2011," published at 9:14 a.m. EDT, incorrectly called the notes seven-year notes in the first paragraph and headline. A corrected version follows.)

 
   DOW JONES NEWSWIRES 
 

Viacom Inc. (VIA) will offer $750 million in senior notes due 2014 and 2019 and use the proceeds to buy back its 5.75% senior notes due 2011.

The media company, which owns cable-TV channels such as MTV and Comedy Central, has seen its media business hurt by declining advertising sales and has been trying to rejuvenate the performance of its film studio, Paramount Pictures.

The company joins a host of others taking advantage of renewed interest in the debt market to raise cash.

Last month, Viacom reported it had $7.37 billion in total debt outstanding and that its cash balance was $250 million, down from $750 million as of Dec. 31.

The company said if any proceeds remain it will repay borrowings under its credit facility or its commercial paper program. Viacom will pay $1,061.25 for every $1,000 principal notes tendered to its buyback offer.

The tender offer will expire Aug. 27 at 5 p.m. EDT (2100 GMT).

Viacom's shares closed Tuesday at $24.85 and haven't traded premarket.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; [e-mail]