Discovery Communications Inc. (NASDAQ:DISCA) has announced the pricing of an offering of $450 million aggregate Senior Notes due 2024 and an additional $200 million aggregate senior notes pursuant to the reopening of its already existing 4.900% Senior Notes that will be due in 2026.
The 2026 Notes that were priced at 105.038% of the principal amount will yield 4.206% up to maturity. The 2024 Notes were quoted at 99.811% of the principal amount and will earn 3.831% to maturity. The sale is scheduled to close on March 13, 2017
The Notes will not be secured and will equally rank will all DCL’s other senior indebtedness that are not secured. The Notes will be unconditionally and fully guaranteed an unsubordinated and an unsecured by the company. The company has approximated the proceeds from the offering to be around $654.1 million after subtracting all expenses related to the offering as well as the underwriting discount.
The proceeds from the offering will be used to finance a tender offer of up to $600 million. Any remaining proceeds will be used to fund the company’s corporate purposes. Citigroup Global Markets Inc, Barclays Capital Inc and RBC Capital Markets, LLC have been appointed as the offering’s book-running managers for the 2024 Notes. J.P. Morgan Securities LLC, Citigroup Global Markets Inc and Merrill Lynch, Pierce, Fenner & Smith Incorporated are the joint book-keeping managers for 2026 Notes.
DCL and the company have filed statement of registration with SEC for the offering. Potential investors are advised to carefully read and analyze prospectus which forms part of the statement of registration and the prospectus statement relating to the offering.
Discovery Communications offers a variety of lifestyle, kids programming and sports brands. The communication company has an audience of over 3 billion viewers on pay-TV as well as free-to-air digital platforms in over 220 countries and territories. The company’s portfolio includes worldwide brands like TLC, Discovery Channel, Investigation Discovery, Science and Turbo/Velocity, Animal Planet, U.S’s Oprah Winfrey Network, Discovery Kids in Latin America as well as Eurosport, the leading channel for local and international sports
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