Discovery Communications to repay four notes series via notes proceeds

By Jennifer Chiou

New York, May 26 - Discovery Communications, LLC plans to use proceeds from the sale of senior notes to prepay some or all of four series of its notes and a portion of its term loans, according to a 424B3 filing with the Securities and Exchange Commission.

Affected notes include the:

• 8.37% senior notes due March 9, 2011, all $220 million of which has been called for prepayment;

• $235 million of 8.13% senior notes due Sept. 30, 2012;

• $390 million of 6.01% senior notes due Dec. 1, 2015; and

• $90 million of floating-rate senior notes due Dec. 1, 2012.

For the year ended Dec. 31, the weighted average interest rate for the floaters was 2.49%.

The notes are to be prepaid at par plus accrued interest.

Discovery said it estimates that the aggregate make-whole payment will be $107 million if all the series of senior notes are prepaid.

A portion of the proceeds will also go towards the prepayment on a pro rata basis of Discovery Communications Holdings, LLC's term loan B and term loan C prior to their stated maturity in May 2014.

As of May 26, there was $1.46 billion outstanding under the term B and $495 million outstanding under the term C.

Discovery Communications is a Silver Spring, Md.-based nonfiction media company.

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