Published on 2/1/2018 in the Prospect News Investment Grade Daily.
New Issue: Comcast prices $3.2 billion of guaranteed fixed-rate notes in three tranches
By Cristal Cody
Tupelo, Miss., Feb. 1 – Comcast Corp. sold $3.2 billion of fixed-rate notes (A3/A-/A-) in three parts on Thursday, according to an FWP filed with the Securities and Exchange Commission.
Comcast priced $1 billion of 3.55% long 10-year notes at 99.647 to yield 3.592% and a spread of Treasuries plus 80 basis points.
The company sold $1.2 billion of 3.9% 20-year notes at 99.515 to yield 3.935% and a Treasuries plus 90 bps spread.
The final $1 billion tranche of 4% 30-year notes priced at 98.193 to yield 4.105%. The bonds priced with a spread of 107 bps over Treasuries.
Barclays, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc. were the bookrunners.
The notes are guaranteed by Comcast Cable Communications, LLC and NBCUniversal Media, LLC.
Proceeds will be used for working capital and general corporate purposes, which may include the repayment of portions of its upcoming debt maturities, which include $900 million outstanding of 5.875% notes due Feb. 15, 2018, $1 billion of outstanding 5.7% notes due May 15, 2018 and outstanding commercial paper, which currently has a weighted average annual interest rate of 1.726%.
Comcast is a media and technology company based in Philadelphia.
| Issuer: | Comcast Corp.
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| Guarantors: | Comcast Cable Communications, LLC and NBCUniversal Media, LLC
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| Amount: | $3.2 billion
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| Description: | Notes
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| Bookrunners: | Barclays, TD Securities (USA) LLC, Wells Fargo Securities LLC, BofA Merrill Lynch, RBC Capital Markets, LLC and SMBC Nikko Securities America, Inc.
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| Co-managers: | BNP Paribas Securities Corp., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, Commerz Markets LLC, DNB Markets, Inc., PNC Capital Markets LLC, U.S. Bancorp Investments, Inc., BNY Mellon Capital Markets, LLC, ICBC Standard Bank Plc and SG Americas Securities, LLC
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| Junior co-managers: | Academy Securities, Inc., CastleOak Securities, LP, Mischler Financial Group, Inc., Samuel A. Ramirez & Co., Inc., Siebert | Cisneros Shank & Co., LLC and Williams Capital Group, LP
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| Trade date: | Feb. 1
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| Settlement date: | Feb. 8
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| Ratings: | Moody’s: A3
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| S&P: A-
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| Fitch: A-
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| Distribution: | SEC registered
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|
|
| Ten-year notes
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| Amount: | $1 billion
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| Maturity: | May 1, 2028
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| Coupon: | 3.55%
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| Price: | 99.647
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| Yield: | 3.592%
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| Spread: | Treasuries plus 80 bps
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| Call features: | Make-whole call before Feb. 1, 2028 at greater of par and Treasuries plus 15 bps; thereafter at par
|
|
|
| Twenty-year notes
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| Amount: | $1.2 billion
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| Maturity: | March 1, 2038
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| Coupon: | 3.9%
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| Price: | 99.515
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| Yield: | 3.935%
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| Spread: | Treasuries plus 90 bps
|
| Call features: | Make-whole call before Sept. 1, 2037 at greater of par and Treasuries plus 15 bps; thereafter at par
|
|
|
| Thirty-year notes
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| Amount: | $1 billion
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| Maturity: | March 1, 2048
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| Coupon: | 4%
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| Price: | 98.193
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| Yield: | 4.105%
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| Spread: | Treasuries plus 107 bps
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| Call feature: | Make-whole call before Sept. 1, 2047 at greater of par and Treasuries plus 20 bps; thereafter at par
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