By Aleesia Forni
Virginia Beach, Sept. 14 – Walt Disney Co. priced $2 billion of senior notes (A2/A/A) on Monday in three parts, according to a market source and an FWP filed with the Securities and Exchange Commission.
There was $500 million 1.5% three-year notes sold at 99.915 to yield 1.529%, or Treasuries plus 50 basis points.
The notes sold at the tight end of price guidance set in the Treasuries plus 55 bps area, tightened from initial talk in the range of Treasuries plus 60 bps to 65 bps.
A $750 million 2.15% five-year tranche sold with a 70 bps spread over Treasuries. Pricing was at 99.75 to yield 2.203%.
The issue came at the tight end of the Treasuries plus 75 bps area guidance following initial talk in the range of Treasuries plus 80 bps to 85 bps.
Finally, $750 million of 3.15% 10-year notes priced at 99.762 to yield 3.178%, or Treasuries plus 100 bps.
The notes sold at the tight end of guidance set in the Treasuries plus 105 bps area. Initially, talk was in the Treasuries plus 115 bps area.
Bookrunners were Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp. and BofA Merrill Lynch.
Proceeds will be used for general corporate purposes.
The entertainment and media company is based in Burbank, Calif.
| Issuer: | Walt Disney Co.
|
| Issue: | Senior notes
|
| Amount: | $2 billion
|
| Bookrunners: | Goldman Sachs & Co., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., BofA Merrill Lynch
|
| Co-managers: | Lloyds Securities Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., Williams Capital Group LP
|
| Junior co-managers: | Guzman & Co., Lebenthal & Co., LLC, Samuel A. Ramirez & Co., Inc., Siebert Brandford Shank & Co., LLC
|
| Trade date: | Sept. 14
|
| Settlement date: | Sept. 17
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 17, 2018
|
| Coupon: | 1.5%
|
| Price: | 99.915
|
| Yield: | 1.529%
|
| Spread: | Treasuries plus 50 bps
|
| Price guidance: | Treasuries plus 55 bps area, tightened from Treasuries plus 60 bps to 65 bps
|
| Make-whole call: | Treasuries plus 10 bps
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 17, 2020
|
| Coupon: | 2.15%
|
| Price: | 99.75
|
| Yield: | 2.203%
|
| Spread: | Treasuries plus 70 bps
|
| Price guidance: | Treasuries plus 75 bps area, tightened from Treasuries plus 80 bps to 85 bps
|
| Make-whole call: | Treasuries plus 12.5 bps
|
|
|
| 10-year notes
|
| Amount: | $750 million
|
| Maturity: | Sept. 17, 2025
|
| Coupon: | 3.15%
|
| Price: | 99.762
|
| Yield: | 3.178%
|
| Spread: | Treasuries plus 100 bps
|
| Price guidance: | Treasuries plus 105 bps area, tightened from Treasuries plus 115 bps area
|
| Make-whole call: | Treasuries plus 15 bps
|
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