By Andrea Heisinger
New York, Aug. 17 - Walt Disney Co. sold $1.85 billion of notes (A2/A/A) in three tranches on Wednesday, said a source away from the trade.
A $750 million tranche of 1.35% five-year notes was priced at 99.206 to yield 1.516% with a spread of Treasuries plus 60 basis points. The notes were priced at the tight end of guidance in the 65 bps area.
The tranche has a make-whole call at Treasuries plus 10 bps.
A $750 million tranche of 2.75% 10-year notes sold at 98.717 to yield 2.899% with a spread of 72 bps over Treasuries. The notes were priced at the low end of guidance in the 75 bps area.
The notes have a make-whole call at Treasuries plus 12.5 bps.
The third part was $350 million of 4.375% 30-year bonds sold at 99.011 to yield 4.435% with a spread of Treasuries plus 87.5 bps. The bonds were sold at the tight end of talk in the 90 bps area.
The bonds have a make-whole call at 15 bps over Treasuries.
Bookrunners were Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC and Morgan Stanley & Co., Inc.
Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and Wells Fargo Securities LLC were the co-managers.
Junior co-managers were CastleOak Securities LP, Lebenthal & Co. LP, Loop Capital Markets LLC, Samuel A Ramirez & Co. Inc. and Williams Capital Group LP.
Proceeds are being used for general corporate purposes, including debt repayment and share repurchases.
Disney last priced debt in a $500 million sale of 3.75% 10-year notes on May 18 at Treasuries plus 60 bps.
The media conglomerate is based in Burbank, Calif.
| Issuer: | Walt Disney Co.
|
| Issue: | Notes
|
| Amount: | $1.85 billion
|
| Bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co., Inc.
|
| Co-managers: | Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Wells Fargo Securities LLC
|
| Junior co-managers: | CastleOak Securities LP, Lebenthal & Co. LP, Loop Capital Markets LLC, Samuel A Ramirez & Co. Inc., Williams Capital Group LP
|
| Trade date: | Aug. 17
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 16, 2016
|
| Coupon: | 1.35%
|
| Price: | 99.206
|
| Yield: | 1.516%
|
| Spread: | Treasuries plus 60 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 65 bps area
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Aug. 16, 2021
|
| Coupon: | 2.75%
|
| Price: | 98.717
|
| Yield: | 2.899%
|
| Spread: | Treasuries plus 72 bps
|
| Call: | Make-whole at Treasuries plus 12.5 bps
|
| Price talk: | 75 bps area
|
|
|
| 30-year bonds
|
| Amount: | $350 million
|
| Maturity: | Aug. 16, 2041
|
| Coupon: | 4.375%
|
| Price: | 99.011
|
| Yield: | 4.435%
|
| Spread: | Treasuries plus 87.5 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
| Price talk: | 90 bps area
|
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