By Andrea Heisinger
New York, March 12 - Discovery Communications LLC was in Tuesday's market with a $1.2 billion sale of senior notes (Baa2/BBB/BBB) in two parts, a market source said.
A $350 million tranche of 3.25% 10-year notes priced at 99.838 to yield 3.269% with a spread of Treasuries plus 125 basis points. The notes have a make-whole call at Treasuries plus 20 bps.
There was also $850 million of 4.875% 30-year bonds sold at 99.888 to yield 4.882% with a spread of 165 bps over Treasuries. There is a make-whole call at Treasuries plus 25 bps.
There is a change-of-control put at 101%.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC were the active bookrunners. Passive bookrunners were Citigroup Global Markets Inc. and RBS Securities Inc.
Proceeds will be used for general corporate purposes.
The notes are guaranteed by Discovery Communications, Inc.
Discovery was last in the bond market with a $1 billion sale of bonds in two parts on May 10, 2012. That trade included a 3.3% 10-year note priced at 155 bps over Treasuries and a 4.95% 30-year bond sold at 195 bps over Treasuries.
The global media company is based in Silver Spring, Md.
| Issuer: | Discovery Communications LLC
|
| Guarantor: | Discovery Communications, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.2 billion
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC (active), Citigroup Global Markets Inc., RBS Securities Inc. (passive)
|
| Co-managers: | BNP Paribas Securities Corp., Morgan Stanley Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co., SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 12
|
| Settlement date: | March 19
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| 10-year notes
|
| Amount: | $350 million
|
| Maturity: | April 1, 2023
|
| Coupon: | 3.25%
|
| Price: | 99.838
|
| Yield: | 3.269%
|
| Spread: | Treasuries plus 125 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
|
|
| 30-year bonds
|
| Amount: | $850 million
|
| Maturity: | April 1, 2043
|
| Coupon: | 4.875%
|
| Price: | 99.888
|
| Yield: | 4.882%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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