Warner Bros. Discovery gives results of any-and-all cash tender offers

By Marisa Wong

Los Angeles, Aug. 10 – Warner Bros. Discovery, Inc. announced the expiration and results of its Aug. 3 cash tender offers for any and all of six notes issued by various subsidiaries as part of its plan to reduce debt, according to a Thursday press release.

As of 5 p.m. ET on Aug. 9, the company received tenders for the following notes, listed with the considerations per $1,000 principal amount:

• $25,552,000 of the $67,262,000 outstanding 4.05% senior notes due 2023 issued by Warner Media, LLC (Cusip: 887317AR6) for $994.64, based on the 0.125% U.S. Treasury due Dec. 15, 2023 and a fixed spread of 25 basis points;

• $5,661,000 of the $32,782,000 outstanding 7.57% senior notes due 2024 issued by Historic TW Inc. (Cusip: 887315BH1) for $1,008.13, based on the 2.5% U.S. Treasury due Jan. 31, 2024 and a fixed spread of 30 bps;

• $223,903,000 of the $383,192,000 outstanding 3.8% senior notes due 2024 issued by Discovery Communications, LLC (Cusip: 25470DAM1) and $837,000 of the notes under guaranteed delivery for $989.01, based on the 0.25% U.S. Treasury due March 15, 2024 and a fixed spread of 30 bps;

• $366,357,000 of the $499.29 million outstanding 3.528% senior notes due 2024 issued by WarnerMedia Holdings, Inc. (Cusips: U56632AK6, 55903VAV5) and $10,000 of the notes under guaranteed delivery for $987.36, based on the 0.25% U.S. Treasury due March 15, 2024 and a fixed spread of 30 bps;

• $1,282,615,000 of the $1,649,358,000 outstanding 3.428% senior notes due 2024 issued by WarnerMedia Holdings (Cusips: 55903VAC7, U55632AB6, 55903VAW3) for $986.80, based on the 0.25% U.S. Treasury due March 15, 2024 and a fixed spread of 30 bps; and

• $6,263,000 of the $54,014,000 outstanding 3.55% senior notes due 2024 issued by Warner Media (Cusip: 887317AV7) for $982.80, based on the 2.5% U.S. Treasury due May 31, 2024 and a fixed spread of 35 bps.

Each issuer expects to accept for purchase all notes tendered by the expiration time, according to Thursday’s announcement.

Each issuer also expects to accept all applicable notes tendered under guaranteed delivery procedures. The guaranteed delivery date is Aug. 11.

The issuers will not accept any further tenders, according to the press release.

Settlement is expected on Aug. 14.

BofA Securities, Inc. (980 387-3907, 888 292-0070, debt_advisory@bofa.com), Citigroup Global Markets Inc. (212 723-6106, 800 558-3745) and RBC Capital Markets, LLC (877 381-2099, 212 618-7843, liability.management@rbccm.com) are the dealer managers for the offers.

D.F. King & Co., Inc. (877 283-0322, 212 269-5550, WBD@dfking.com, www.dfking.com/WBD) is the tender and information agent.

Warner Bros. Discovery is a media and entertainment company based in New York.

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