Published on 5/28/2014 in the Prospect News Investment Grade Daily.
New Issue: Disney prices upsized $2 billion of senior notes in four tranches
By Aleesia Forni
Virginia Beach, May 28 - Walt Disney Co. priced $2 billion of senior notes (A2/A/A) during Wednesday's session in four tranches, according to two FWP filings with the Securities and Exchange Commission and a market source.
The company priced $500 million of 0.875% three-year notes at Treasuries plus 20 basis points. Pricing was at 99.82 to yield 0.936%.
A second tranche was $250 million of floating-rate notes due 2019 priced at par to yield Libor plus 31 bps.
There was also $750 million of 1.85% notes due 2019 sold at 99.9 to yield 1.871%, or Treasuries plus 40 bps.
Finally, $500 million of 4.125% notes due 2044 priced with a spread of 85 bps over Treasuries. The notes sold at 99.829 to yield 4.135%.
The bookrunners were HSBC Securities (USA) Inc., Morgan Stanley & Co. LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc. and Deutsche Bank Securities Inc.
The entertainment and media company is based in Burbank, Calif.
| Issuer: | Walt Disney Co.
|
| Issue: | Senior notes
|
| Amount: | $2 billion, upsized from $1.5 billion
|
| Joint bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., Morgan Stanley | & Co. LLC, Wells Fargo Securities LLC
|
| Co-managers: | Banca IMI S.p.A., BNY Mellon Capital Markets, LLC, SunTrust Robinson Humphrey, | Inc., U.S. Bancorp Investments, | Inc.
|
| Junior co-managers: | Blaylock Beal Van, LLC, CastleOak Securities LP, MFR Securities Inc., Mischler Financial Group | Inc., Samuel A. Ramirez | & Company, | Inc.
|
| Trade date: | May 28
|
| Settlement date: | June 2
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
| Distribution: | SEC-registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | May 30, 2017
|
| Coupon: | 0.875%
|
| Price: | 99.82
|
| Yield: | 0.936%
|
| Spread: | Treasuries plus 20 bps
|
| Price talk: | High-20 basis points area over Treasuries
|
| Make-whole call: Treasuries plus 5 bps
|
|
|
| Five-year floaters
|
| Amount: | $250 million
|
| Maturity: | May 30, 2019
|
| Coupon: | Libor plus 31 bps
|
| Price: | Par
|
| Yield: | Libor plus 31 bps
|
| Price talk: | Libor equivalent to five-year notes
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | May 30, 2019
|
| Coupon: | 1.85%
|
| Price: | 99.9
|
| Yield: | 1.871%
|
| Spread: | Treasuries plus 40 bps
|
| Price talk: | Mid-40 bps area over Treasuries
|
| Make-whole call: Treasuries plus 5 bps
|
|
|
| Thirty-year bonds
|
| Amount: | $500 million
|
| Maturity: | June 1, 2044
|
| Coupon: | 4.125%
|
| Price: | 99.829
|
| Yield: | 4.135%
|
| Spread: | Treasuries plus 85 bps
|
| Price talk: | Low-90 bps area over Treasuries
|
| Make-whole call: Treasuries plus 15 bps
|
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