NORWOOD, Mass.--(Business Wire)--
National Amusements, Inc. ("NAI") announced today that with the one-time
underwritten sale of a portion of CBS Corporation stock and Viacom Inc. stock
owned by NAI, and with the anticipated sales of certain noncore assets, NAI will
be in a position to pay off all of its existing creditors in full. The share
sales and the asset divestitures will enable NAI not only to retain control of
both CBS and Viacom but also to retain full ownership of all of its theater
assets in the UK and Brazil and its core theater assets in the United States.
Viacom and CBS have filed documents with the Securities and Exchange Commission
that will permit NAI to sell, in concurrent underwritten offerings, a portion of
CBS and Viacom stock owned by NAI. NAI expects to receive gross proceeds of
approximately $600 million in the offering of Viacom stock and approximately
$345 million in the offering of CBS stock, assuming full exercise of the
underwriters` overallotment option. The proceeds from this sale, combined with
proceeds from the asset divestitures, will be provided to existing creditors in
accordance with the credit documents. NAI has no intention to further reduce its
ownership levels in CBS and Viacom and will retain in excess of 75% of the
voting control of each company after giving effect to the offerings.
"As a result of our actions, National Amusements will be out of debt with its
existing creditors and will still control its most important assets,'' said
Sumner Redstone, Chairman and CEO of National Amusements. "We believe in the
significant long-term value of Viacom and CBS Corporation, both of which are
well-positioned for growth in this improving economic environment. Similarly,
with leadership positions in key domestic and international markets, National
Amusements theaters have outstanding near and long-term prospects."
About National Amusements, Inc.
A world leader in the motion picture exhibition industry, the assets of National
Amusements, Inc. include more than 1,500 motion picture screens in the U.S.,
U.K., Latin America and Russia; a portfolio of real estate assets; a partnership
in the online ticketing service, MovieTickets.com; and controlling interests in
the common stock of Viacom Inc. and CBS Corporation. Through its exhibition
operations, National Amusements delivers a superior entertainment experience in
theatres around the world under its Showcase, Multiplex, Cinema de Lux, and
KinoStar brands. Based in Norwood, Massachusetts, National Amusements is a
closely held company controlled by Sumner M. Redstone.
This press release does not constitute an offer to sell or a solicitation of an
offer to buy any securities. A registration statement relating to the shares of
CBS Class B Common Stock has been filed by CBS Corporation with the Securities
and Exchange Commission and is effective. A registration statement relating to
the shares of Viacom Class B Common Stock has been filed by Viacom Inc. with the
Securities and Exchange Commission and is effective. Copies of the prospectuses
for these offerings may be obtained from Citi at Brooklyn Army Terminal, 140
58th Street, 8th Floor, Brooklyn, New York 11220 (1-800-831-9146). These
documents can also be obtained for free from the SEC website at www.sec.gov.
Sard Verbinnen & Co
George Sard/Brandy Bergman, 212-687-8080
Copyright Business Wire 2009
