Chicago, May 7 – Discovery Communications, LLC priced $2 billion of senior notes (Baa3/BBB-/BBB-) in two tranches on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by Discovery, Inc.
A $1 billion tranche of 3.625% 10-year senior notes priced at par to yield 300 basis points over Treasuries.
A $1 billion tranche of 4.65% 30-year senior notes came with a spread of 335 bps over Treasuries. The notes priced at 99.872 to yield 4.658%.
Initial price talk on the 10-year tranche was in the Treasuries plus 335 bps area, while the 30-year bond was talked at the 370 bps spread area.
The notes feature a make-whole call and then are callable at par.
BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets Corp. are the bookrunners.
Proceeds will be used for a tender offer for up to $1.5 billion of senior notes and for general corporate purposes, including repaying or refinancing debt.
The global media company is based in Silver Spring, Md.
| Issuer: | Discovery Communications, LLC
|
| Guarantor: | Discovery, Inc.
|
| Amount: | $2 billion
|
| Description: | Senior notes
|
| Bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Barclays, BNP Paribas Securities Corp., J.P. Morgan Securities LLC, Mizuho Securities USA Inc. and RBC Capital Markets Corp.
|
| Co-managers: | Deutsche Bank Securities Inc., MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey, Inc., Wells Fargo Securities, LLC and HSBC Securities (USA) Inc.
|
| Change-of-control put: | At 101 plus accrued interest
|
| Trade date: | May 7
|
| Settlement date: | May 18
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | May 15, 2030
|
| Coupon: | 3.625%
|
| Price: | Par
|
| Yield: | 3.625%
|
| Spread: | Treasuries plus 300 bps
|
| Call feature: | Make-whole call before Feb. 15, 2030 at Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 335 bps area
|
|
|
| 30-year notes
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| Amount: | $1 billion
|
| Maturity: | May 15, 2050
|
| Coupon: | 4.65%
|
| Price: | 99.872
|
| Yield: | 4.658%
|
| Spread: | Treasuries plus 335 bps
|
| Call feature: | Make-whole call before Nov. 15, 2049 at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | Treasuries plus 370 bps area
|
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