The debt offering makes ViacomCBS the latest media conglomerate after Disney and Comcast seeking to raise cash amid the worsening economic crisis caused by the spread of the Covid-19 outbreak.
ViacomCBS has disclosed plans for a $2.5bn debt offering, an effort that comes as the newly merged company faces tough scrutiny of its growth strategy and balance sheet amid the coronavirus-related economic crisis.
ViacomCBS intends to use net proceeds from the offering for general corporate purposes, which may include repayment of outstanding indebtedness.
For ViacomCBS, however, the move comes at a time when investors are questioning the company’s long-term prospects following the long-awaited merger of Viacom and CBS Corp. that closed in early December.
“While ViacomCBS has experienced production delays, the company has seen increased viewership across its broadcast and cable properties, and is utilising its deep library of content to mitigate in part the impact of those delays,” the company said in a filing.