Discovery Communications to launch $500 million term loan B add-on

By Sara Rosenberg

New York, May 5 - Discovery Communications Holding LLC is scheduled to hold a conference call at 11 a.m. ET on Wednesday to officially launch its proposed $500 million term loan B add-on, according to a market source.

Bank of America and JPMorgan are the lead banks on the deal, with Bank of America the left lead.

The term loan B add-on is talked at Libor plus 350 basis points with a 2% Libor floor, the source said.

There will be an original issue discount, but the amount is still to be determined, the source added.

Proceeds will be used for general corporate purposes.

Commitments from lenders will be due next week.

The company's existing term loan B, which just received a Baa3 rating from Moody's Investors Service on Tuesday, will not see a change in pricing in connection with the add-on since there is no Most-Favored-Nation language in the existing credit agreement.

Discovery Communications is a Silver Spring, Md.-based nonfiction media company.

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