By Andrea Heisinger
New York, June 13 - Discovery Communications LLC sold an upsized $650 million 4.375% 10-year guaranteed senior notes on Monday to yield 150 basis points over Treasuries, a source close to the deal said.
The paper was priced at the tight end of guidance in the 150 bps to 155 bps range, the source said. The size was initially $500 million.
The notes (Baa2/BBB/BBB) were priced at 99.377 to yield 4.453%.
The securities have a make-whole call at Treasuries plus 25 bps and feature a change-of-control put at 101%.
Active bookrunners were Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and J.P. Morgan Securities LLC. Passive bookrunners were Bank of America Merrill Lynch and RBS Securities Inc.
Co-managers were BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities, LLC.
Proceeds will be used for general corporate purposes, including acquisitions of companies or businesses, repayment and refinancing of debt, for working capital, for capital expenditures and for the repurchase of common stock.
The notes are guaranteed by Discovery Communications Inc.
Discovery Communications last sold bonds in a $3 billion deal in three parts on May 26, 2010. The 10-year tranche from that deal was priced at 190 bps over Treasuries.
The media and entertainment company is based in Silver Spring, Md.
| Issuer: | Discovery Communications LLC
|
| Guarantor: | Discovery Communications Inc.
|
| Issue: | Senior notes
|
| Amount: | $650 million, upsized from $500 million
|
| Maturity: | June 15, 2021
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC (active), Bank of America Merrill Lynch, RBS Securities Inc. (passive)
|
| Co-managers: | BNP Paribas Securities Corp., Credit Agricole Securities (USA) Inc., Goldman Sachs & Co., Morgan Stanley & Co. Inc., RBC Capital Markets LLC, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC
|
| Coupon: | 4.375%
|
| Price: | 99.377
|
| Yield: | 4.453%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 13
|
| Settlement date: | June 20
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 150 to 155 bps
|
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