Viacom to Issue Debt

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Viacom said Wednesday that it will issue $750 million in
senior notes due 2014 and 2019 in part to fund a tender offer for its 5.75%
senior notes due 2011.

In a statement, Viacom said it plans to offer $1,061.25 in
cash for every $1,000 principal amount of the 5.75% bonds. Deutsche Bank
Securities and Citigroup Global Markets are the joint book-runners for the
offering, which expires Aug. 27. Deutsche Bank Securities, Citigroup Global
Markets and RBS Securities are serving as dealer-managers for the tender offer.

Viacom said it would use the proceeds of the bond offering
to fund the tender and any remaining money would be used to pay down borrowings
under its revolving credit facility and/or its commercial paper program.

The Viacom debt deal is the third in the past two weeks --
Mediacom Communications announced a $650 million debt deal on Aug. 13 and Dish Network closed its $1 billion private debt offering on Aug. 17. 

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