Published on 3/19/2020 in the Prospect News Investment Grade Daily.
New Issue: Walt Disney prices $6 billion of fixed-rate notes in five tranches
By Cristal Cody
Tupelo, Miss., March 19 – The Walt Disney Co. sold $6 billion of medium-term notes (A2/A/A) in five tranches on Thursday, according to a market source and an FWP filing with the Securities and Exchange Commission.
A $1.75 billion tranche of 3.35% five-year notes priced at 99.945 to yield 3.362% and a spread of Treasuries plus 270 basis points.
Walt Disney sold $500 million of 3.7% seven-year notes at 99.89 to yield 3.718%, or a Treasuries plus 270 bps spread.
The company brought $1.25 billion of 3.8% 10-year notes at 99.72 to yield 3.834% and a Treasuries plus 270 bps spread.
A $750 million tranche of 4.625% 20-year notes priced at 99.767 to yield 4.643%, or a 275 bps over Treasuries spread.
In the final tranche, Walt Disney sold $1.75 billion of 4.7% 30-year notes at 99.316 to yield 4.743% and a Treasuries plus 285 bps spread.
The five-, seven- and 10-year notes were talked to price at the Treasuries plus 285 bps area.
The 20-year notes were initially talked to price with a spread in the 290 bps over Treasuries area, and the 30-year notes were talked at the 300 bps spread area.
Bookrunners were BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC.
The notes will be guaranteed by TWDC Enterprises 18 Corp.
Proceeds will be used for general corporate purposes, including debt repayment.
Walt Disney is a Burbank, Calif.-based entertainment and media company.
| Issuer: | Walt Disney Co.
|
| Guarantor: | TWDC Enterprises 18 Corp.
|
| Amount: | $6 billion
|
| Description: | Medium-term notes
|
| Bookrunners: | BofA Securities, Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., Mizuho Securities USA LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, SG Americas Securities, LLC, SMBC Nikko Securities America, Inc., SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
|
| Co-managers: | Banca IMI SpA, Commerz Markets LLC, ING Financial Markets LLC, Santander Investment Securities Inc., Standard Chartered Bank, Academy Securities, Inc., C.L. King & Associates, Inc., Loop Capital Markets LLC, Great Pacific Securities and Penserra Securities LLC
|
| Trade date: | March 19
|
| Settlement date: | March 23
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 24, 2025
|
| Coupon: | 3.35%
|
| Price: | 99.945
|
| Yield: | 3.362%
|
| Spread: | Treasuries plus 270 bps
|
| Call feature: | Make-whole-call at Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 285 bps area
|
|
|
| Seven-year notes
|
| Amount: | $500 million
|
| Maturity: | March 23, 2027
|
| Coupon: | 3.7%
|
| Price: | 99.89
|
| Yield: | 3.718%
|
| Spread: | Treasuries plus 270 bps
|
| Call feature: | Make-whole-call at Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 285 bps area
|
|
|
| 10-year notes
|
| Amount: | $1.25 billion
|
| Maturity: | March 22, 2030
|
| Coupon: | 3.8%
|
| Price: | 99.72
|
| Yield: | 3.834%
|
| Spread: | Treasuries plus 270 bps
|
| Call feature: | Make-whole-call at Treasuries plus 45 bps
|
| Price guidance: | Treasuries plus 285 bps area
|
|
|
| 20-year notes
|
| Amount: | $750 million
|
| Maturity: | March 23, 2040
|
| Coupon: | 4.625%
|
| Price: | 99.767
|
| Yield: | 4.643%
|
| Spread: | Treasuries plus 275 bps
|
| Call features: | Make-whole-call before Sept. 23, 2039 at Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 290 bps area
|
|
|
| 30-year notes
|
| Amount: | $1.75 billion
|
| Maturity: | March 23, 2050
|
| Coupon: | 4.7%
|
| Price: | 99.316
|
| Yield: | 4.743%
|
| Spread: | Treasuries plus 285 bps
|
| Call features: | Make-whole-call before Sept. 23, 2049 at Treasuries plus 45 bps; thereafter at par
|
| Price guidance: | Treasuries plus 300 bps area
|
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