Published on 3/6/2023 in the Prospect News Investment Grade Daily.
New Issue: WarnerMedia prices $1.5 billion 6.412% notes due 2026 at Treasuries plus 178 bps
By Wendy Van Sickle
Columbus, Ohio, March 6 – WarnerMedia Holdings, Inc. sold $1.5 billion of 6.412% three-year senior notes (Baa3/BBB-/BBB-) at par on Monday with a spread of 178 basis points over Treasuries, according to an FWP filing with the Securities and Exchange Commission.
The notes are guaranteed by Warner Bros. Discovery, Inc.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Wells Fargo Securities, LLC were the bookrunners.
Proceeds will be used to repay a portion of borrowings outstanding under the company’s term loan facility.
Warner Bros. Discovery is a mass media and entertainment conglomerate based in New York.
Issuer: | WarnerMedia Holdings, Inc.
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Guarantor: | Warner Bros. Discovery, Inc.
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Amount: | $1.5 billion
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Issue: | Senior notes
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Maturity: | March 15, 2026
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Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA LLC and Wells Fargo Securities, LLC
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Co-managers: | AmeriVet Securities, Inc., Blaylock Van, LLC, Samuel A. Ramirez & Co., Inc. and R. Seelaus & Co., LLC
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Trustee: | U.S. Bank NA
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Counsel to issuer: | Debevoise & Plimpton LLP, Potter Anderson & Corroon LLP and Womble Bond Dickinson (US) LLP
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Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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Coupon: | 6.412%
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Price: | Par
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Yield: | 6.412%
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Spread: | Treasuries plus 178 bps
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Call feature: | Make-whole at Treasuries plus 30 bps call until March 15, 2024, par call thereafter; company must offer to repurchase notes at 101 if a change-of-control event occurs
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Trade date: | March 6
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Settlement date: | March 10
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Ratings: | Moody’s: Baa3
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| S&P: BBB-
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| Fitch: BBB-
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Distribution: | SEC registered
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Cusip: | 55903VBG7
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