By Cristal Cody
Tupelo, Miss., May 11 – The Walt Disney Co. sold $11 billion of senior notes (A2/A-/A) in six tranches on Monday in an offering that saw final book demand of more than $30 billion, according to a market source.
A $1.5 billion tranche of 1.75% notes due Jan. 13, 2026 priced at 99.741 to yield 1.798%, or 145 basis points over Treasuries.
The company priced $1 billion of 2.2% notes due Jan. 13, 2028 at 99.675 to yield 2.246%, or Treasuries plus 170 bps.
A $2.5 billion tranche of 2.65% notes due Jan. 13, 2031 priced at 99.932 to yield 2.657% and a 195 bps over Treasuries spread.
Walt Disney sold $1.75 billion of 3.5% notes due Jan. 13, 2040 at 99.9 to yield 3.507%, or Treasuries plus 210 bps.
The company placed $2.75 billion of 3.6% notes due Jan. 13, 2051 at 99.864 to yield 3.607%. The notes priced at a spread of 220 bps over Treasuries.
In the final tranche, $1.5 billion of 3.8% notes due Jan. 13, 2060 priced at 99.857 to yield 3.807% and a 240 bps over Treasuries spread.
Initial price talk on the six-year notes was in the Treasuries plus 175 bps area, while the eight-year notes were talked at the 200 bps spread area, the long 10-year notes at the 225 bps spread area, the 20-year notes at the 245 bps area, 30-year notes at the 255 bps spread area and the 40-year notes at the 275 bps over Treasuries area.
BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsch Bank Securities Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC were the bookrunners.
The notes will be guaranteed by TWDC Enterprises 18 Corp.
Proceeds will be used for general corporate purposes, including repayment of commercial paper and repayment at maturity of TWDC Enterprises’ 1.8% notes due June 2020, of which $750 million is outstanding, and TWDC Enterprises’ floating-rate notes due June 2020, of which $500 million is outstanding.
Walt Disney is a Burbank, Calif.-based entertainment and media company.
| Issuer: | Walt Disney Co.
|
| Guarantor: | TWDC Enterprises 18 Corp.
|
| Amount: | $11 billion
|
| Description: | Medium-term notes
|
| Bookrunners: | BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsch Bank Securities Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Trade date: | May 11
|
| Ratings: | Moody’s: A2
|
| S&P: A-
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Notes due 2026
|
| Amount: | $1.5 billion
|
| Maturity: | Jan. 13, 2026
|
| Coupon: | 1.75%
|
| Price: | 99.741
|
| Yield: | 1.798%
|
| Spread: | Treasuries plus 145 bps
|
| Price guidance: | Treasuries plus 175 bps area
|
|
|
| Notes due 2028
|
| Amount: | $1 billion
|
| Maturity: | Jan. 13, 2028
|
| Coupon: | 2.2%
|
| Price: | 99.675
|
| Yield: | 2.246%
|
| Spread: | Treasuries plus 170 bps
|
| Price guidance: | Treasuries plus 200 bps area
|
|
|
| Notes due 2031
|
| Amount: | $2.5 billion
|
| Maturity: | Jan. 13, 2031
|
| Coupon: | 2.65%
|
| Price: | 99.932
|
| Yield: | 2.657%
|
| Spread: | Treasuries plus 195 bps
|
| Price guidance: | Treasuries plus 225 bps area
|
|
|
| Notes due 2040
|
| Amount: | $1.75 billion
|
| Maturity: | Jan. 13, 2040
|
| Coupon: | 3.5%
|
| Price: | 99.9
|
| Yield: | 3.507%
|
| Spread: | Treasuries plus 210 bps
|
| Price guidance: | Treasuries plus 245 bps area
|
|
|
| Notes due 2051
|
| Amount: | $2.75 billion
|
| Maturity: | Jan. 13, 2051
|
| Coupon: | 3.6%
|
| Price: | 99.864
|
| Yield: | 3.607%
|
| Spread: | Treasuries plus 220 bps
|
| Price guidance: | Treasuries plus 255 bps area
|
|
|
| Notes due 2060
|
| Amount: | $1.5 billion
|
| Maturity: | May 13, 2060
|
| Coupon: | 3.8%
|
| Price: | 99.857
|
| Yield: | 3.807%
|
| Spread: | Treasuries plus 240 bps
|
| Price guidance: | Treasuries plus 275 bps area
|
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