Paramount Global is raising $1 billion in fresh cash through a bond sale expected to close March 29.
It said it intends to use proceeds from the offering for general corporate purposes — which may include paying down debt.
The company formerly known as ViacomCBS rebranded last month in a nod to its storied studio and the centerpiece of its streaming push, Paramount+.
“An iconic global company deserves an iconic global name – one that reflects the power of our content, one that reflects our role as stewards of a rich heritage and as leaders in the future of entertainment,” CEO Bob Bakish and non-executive board chair Shari Redstone said then.
At a virtual investor meeting, Bakish with Paramount’s operating executives rolled out the company’s upcoming content offerings and strategy, which includes hefty and growing investment in programming for the direct-to-consumer business. Big media companies across the board now are pouring money in content to feed their streamers.
Paramount (which also owns CBS, Showtime, Nickelodeon, MTV, Comedy Central, BET, Pluto TV and, for now, Simon & Schuster) has also been selling off assets to raise cash, divesting CBS Studio Center, Black Rock and CNET. It inked a deal to sell the publisher Simon & Schuster to Bertelsmann’s Penguin Random House last year but the DOJ has sued to block the merger.
Paramount said the 6.375% fixed-to-fixed rate junior subordinated debentures are due 2062.
The company’s shares have been trading on the Nasdaq as PARAA (Class A common), PARA (Class B common) and PARAP (Preferred Stock) since February 17.