Paramount Global Announces Redemption of Approximately $1.0 Billion of Notes

Rhea-AI Summary

Paramount Global (NASDAQ: PARA, PARAA) announced the redemption of $1 billion in senior notes, comprising $275 million of 3.50% notes due January 15, 2025, and $695 million of 4.750% notes due May 15, 2025. The redemption dates are set for April 18, 2022, for the 3.50% notes, and April 11, 2022, for the 4.750% notes. The redemption price will include the principal amount, a calculated make-whole amount, and accrued interest up to the respective redemption dates. This strategic move reflects the company's commitment to optimizing its debt structure.

Positive

• Redemption of $1 billion in senior notes improves financial flexibility.
• Elimination of debt reduces interest expenses and enhances balance sheet.

Negative

• Redemption of a significant portion of 4.750% notes may suggest cash flow concerns.

NEW YORK, April 1, 2022 /PRNewswire/ -- Paramount Global (the "Company") (NASDAQ: PARA, PARAA) today announced that it would redeem (i) all of its outstanding 3.50% senior notes due January 15, 2025 (the "3.50% notes") and (ii) a portion of its outstanding 4.750% senior notes due May 15, 2025 (the "4.750% notes").  The redemption date for the 3.50% notes is April 18, 2022.  The redemption date for the 4.750% notes is April 11, 2022.

The redemption price for the 3.50% notes and the 4.750% notes is equal to the sum of 100% of the principal amount of such series of notes to be redeemed, the make-whole amount calculated in accordance with the respective terms of such series of notes and the related indenture under which such series of notes was issued, and the accrued and unpaid interest on such series of notes up to, but excluding, the respective redemption date on the principal amount of such series of notes to be redeemed.  The aggregate principal amount of each such series of notes outstanding and the aggregate principal amount of each such series of notes to be redeemed is as set forth below:

Title of Security	Aggregate Principal Amount Outstanding	Aggregate Principal Amount to be Redeemed
3.50% notes	$275,000,000	$275,000,000
4.750% notes	$1,250,000,000	$695,000,000

Holders owning notes through a broker, bank, or other nominee should contact that party for information.  For more information, holders of the 3.50% notes and the 4.750% notes may call the paying agent for the redemption of such series of notes, Deutsche Bank Trust Company Americas at (800) 735-7777.

About Paramount

Paramount Global (NASDAQ: PARA, PARAA) is a leading global media and entertainment company that creates premium content and experiences for audiences worldwide. Driven by iconic studios, networks and streaming services, Paramount's portfolio of consumer brands includes CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+, Pluto TV and Simon & Schuster, among others. Paramount delivers the largest share of the U.S. television audience and boasts one of the industry's most important and extensive libraries of TV and film titles. In addition to offering innovative streaming services and digital video products, the company provides powerful capabilities in production, distribution and advertising solutions.

Cautionary Note Concerning Forward-Looking Statements

This communication contains both historical and forward-looking statements, including statements related to our future results and performance. All statements that are not statements of historical fact are, or may be deemed to be, forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Similarly, statements that describe our objectives, plans or goals are or may be forward-looking statements. These forward-looking statements reflect our current expectations concerning future results and events; generally can be identified by the use of statements that include phrases such as "believe," "expect," "anticipate," "intend," "plan," "foresee," "likely," "will," "may," "could," "estimate" or other similar words or phrases; and involve known and unknown risks, uncertainties and other factors that are difficult to predict and which may cause our actual results, performance or achievements to be different from any future results, performance or achievements expressed or implied by these statements. These risks, uncertainties and other factors include, among others: risks related to our streaming initiatives; changes in consumer behavior, as well as evolving technologies, distribution platforms and packaging; the impact on our advertising revenues as a result of changes in consumer viewership, advertising market conditions and deficiencies in audience measurement; our ability to maintain attractive brands and our reputation, and to offer popular programming and other content; increased costs for content and other rights; competition for talent, content, audiences, subscribers, advertising and distribution; the potential for loss of carriage or other reduction in or the impact of negotiations for the distribution of our content; losses due to asset impairment charges for goodwill, intangible assets, FCC licenses and programming; risks related to our ongoing investments in new businesses, products, services and technologies, through acquisitions and other strategic initiatives; evolving business continuity, cybersecurity, privacy and data protection and similar risks; content infringement; the impact of Covid-19 and other pandemics and measures taken in response thereto; domestic and global political, economic and regulatory factors affecting our businesses generally; liabilities related to discontinued operations and former businesses; the loss of existing or inability to hire new key employees or secure creative talent; strikes and other union activity; potential conflicts of interest arising from our ownership structure with a controlling stockholder; and other factors described in our news releases and filings with the Securities and Exchange Commission, including but not limited to our most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K. There may be additional risks, uncertainties and factors that we do not currently view as material or that are not necessarily known. The forward-looking statements included in this communication are made only as of the date of this communication, and we do not undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.

PARA-IR

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SOURCE Paramount Global

FAQ

What notes is Paramount Global redeeming?

Paramount Global is redeeming $275 million of 3.50% senior notes due January 15, 2025, and $695 million of 4.750% senior notes due May 15, 2025.

When is the redemption date for the 3.50% notes?

The redemption date for the 3.50% notes is April 18, 2022.

What is the redemption date for the 4.750% notes?

The redemption date for the 4.750% notes is April 11, 2022.

How much debt is Paramount Global redeeming?

Paramount Global is redeeming approximately $1 billion in total senior notes.

What is the significance of redeeming these senior notes for PARA and PARAA investors?

The redemption may improve Paramount's financial flexibility and reduce interest expenses, benefiting shareholders.