By Cristal Cody
Tupelo, Miss., Sept. 7 – Discovery Communications, LLC (Baa3/BBB-/BBB-) sold $6.3 billion of senior notes in six tranches on Thursday, according to a market source.
The company priced $400 million of two-year floaters at Libor plus 71 basis points.
A $500 million tranche of 2.2% two-year fixed-rate notes was priced with a spread of 95 basis points over Treasuries. The notes sold at 99.961 to yield 2.22%.
Discovery Communications priced $1.2 billion of 2.95% notes due March 20, 2023 at a Treasuries plus 135 bps spread. The notes sold at 99.874 to yield 2.975%.
The company sold $1.7 billion of 3.95% notes due March 20, 2028 with a 195 bps over Treasuries spread. The tranche priced at 99.643 to yield 3.992%.
In the 20-year tranche, the company sold $1.25 billion of 5% notes at a spread of 235 bps over Treasuries. The notes were priced at 99.9 to yield 5.008%.
The final $1.25 billion tranche of 5.2% 30-year notes priced with a spread of 255 bps over Treasuries. This portion was sold at 99.879 to yield 5.208%.
Goldman Sachs & Co., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC were the bookrunners.
The notes will be guaranteed by Discovery Communications, Inc.
Discovery Communications, a global media company based in Silver Spring, Md., plans to acquire Scripps Networks Interactive in a $14.6 billion cash and stock deal.
Scripps Network Interactive is a media company based in Knoxville.
Proceeds from the deal will be used for the merger. If the merger is not completed by Aug. 30, 2018, the company will be required to redeem the 2023 notes, the 2028 notes, the 2037 notes and the 2047 notes. Proceeds from the other notes will be used for general corporate purposes, which may include the repayment of the company’s senior fixed-rate notes.
| Issuer: | Discovery Communications, LLC
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| Guarantor: | Discovery Communications, Inc.
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| Amount: | $6.3 billion
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| Description: | Senior notes
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| Bookrunners: | Goldman Sachs & Co., Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC
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| Trade date: | Sept. 7
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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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|
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| Two-year floaters
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| Amount: | $400 million
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| Maturity: | Sept. 20, 2019
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| Coupon: | Libor plus 71 bps
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| Price: | Par
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|
|
| Two-year notes
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| Amount: | $500 million
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| Maturity: | Sept. 20, 2019
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| Coupon: | 2.2%
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| Price: | 99.961
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| Yield: | 2.22%
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| Spread: | Treasuries plus 95 bps
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|
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| 5.5-year notes
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| Amount: | $1.2 billion
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| Maturity: | March 20, 2023
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| Coupon: | 2.95%
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| Price: | 99.874
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| Yield: | 2.975%
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| Spread: | Treasuries plus 135 bps
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|
|
| 10.5-year notes
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| Amount: | $1.7 billion
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| Maturity: | March 20, 2028
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| Coupon: | 3.95%
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| Price: | 99.643
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| Yield: | 3.992%
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| Spread: | Treasuries plus 195 bps
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|
|
| 20-year notes
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| Amount: | $1.25 billion
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| Maturity: | Sept. 20, 2037
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| Coupon: | 5%
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| Price: | 99.9
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| Yield: | 5.008%
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| Spread: | Treasuries plus 235 bps
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|
|
| 30-year notes
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| Amount: | $1.25 billion
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| Maturity: | Sept. 20, 2047
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| Coupon: | 5.2%
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| Price: | 99.879
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| Yield: | 5.208%
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| Spread: | Treasuries plus 255 bps
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