By Andrea Heisinger
New York, Feb. 9 - The Walt Disney Co. sold $1.4 billion of senior notes (A2/A/A) in two tranches on Thursday, a market source said.
The $1 billion of 1.125% five-year paper priced at 99.04 to yield 1.324% with a spread of 47 basis points over Treasuries. They were sold at the tight end of guidance in the 50 bps area.
There was also a $400 million tranche of 2.55% 10-year notes sold at 99.3 to yield 2.63% with a spread of Treasuries plus 62 bps. These notes also priced at the tight end of talk in the 65 bps area.
Each of the notes has a make-whole call at 10 bps over Treasuries.
Bookrunners were BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc. and J.P. Morgan Securities LLC.
Proceeds are being used for general corporate purposes, including terming out a portion of its outstanding commercial paper.
Disney was last in the market with a $1.6 billion issue of notes in three- and 30-year maturities on Nov. 29, 2011.
The entertainment and media company is based in Burbank, Calif.
| Issuer: | Walt Disney Co.
|
| Issue: | Senior notes
|
| Amount: | $1.4 billion
|
| Bookrunners: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 14
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2017
|
| Coupon: | 1.125%
|
| Price: | 99.04
|
| Yield: | 1.324%
|
| Spread: | Treasuries plus 47 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 50 bps area
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Feb. 15, 2022
|
| Coupon: | 2.55%
|
| Price: | 99.3
|
| Yield: | 2.63%
|
| Spread: | Treasuries plus 62 bps
|
| Call: | Make-whole at Treasuries plus 10 bps
|
| Price talk: | 65 bps area
|
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