By Aleesia Forni
New York, Jan. 5 – Walt Disney Co. priced $3 billion of senior notes (A2/A/A) on Tuesday in five tranches, a market source said.
Included in the sale was $350 million of 1.65% three-year notes sold at 99.866 to yield 1.696%, or Treasuries plus 40 basis points.
The notes were talked in the Treasuries plus 45 bps area, tightened from the Treasuries plus 50 bps area.
A $400 million tranche of three-year floaters sold at par to yield Libor plus 32 bps after being talked at the Libor equivalent to the fixed-rate tranche.
Also, $750 million of 2.3% five-year notes priced at 99.903 to yield 2.32% with a spread of Treasuries plus 60 bps.
Pricing came at the tightest side of the Treasuries plus 65 bps area guidance after having firmed from the Treasuries plus high-60 bps area.
A $1 billion 3% tranche of 10-year notes sold at 99.6 to yield 3.046% with a spread of Treasuries plus 80 bps.
Guidance was in the Treasuries plus 85 bps area, and the notes were initially talked in the Treasuries plus high-90 bps area.
Finally, a $500 million tap of the company’s existing 4.125% notes due June 1, 2044 sold at 100.884 to yield 4.072%, or Treasuries plus 105 bps.
The notes were issued at the tightest side of the Treasuries plus 110 bps area guidance. Initial price thoughts were in the Treasuries plus 120 bps area.
Proceeds will be used for general corporate purposes.
Bookrunners were Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities, Mizuho Securities and RBC Capital Markets LLC.
The entertainment and media company is based in Burbank, Calif.
| Issuer: | Walt Disney Co.
|
| Issue: | Senior notes
|
| Amount: | $3 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities, Mizuho Securities, RBC Capital Markets LLC
|
| Trade date: | Jan. 5
|
| Settlement date: | Jan. 8
|
| Ratings: | Moody’s: A2
|
| Standard & Poor’s: A
|
| Fitch: A
|
| Distribution: | SEC registered
|
|
|
| Three-year notes
|
| Amount: | $350 million
|
| Maturity: | Jan. 8, 2019
|
| Coupon: | 1.65%
|
| Price: | 99.866
|
| Yield: | 1.696%
|
| Spread: | Treasuries plus 40 bps
|
| Price guidance: | Treasuries plus 45 bps area, tightened from Treasuries plus 50 bps area
|
|
|
| Three-year floaters
|
| Amount: | $400 million
|
| Maturity: | Jan. 8, 2019
|
| Coupon: | Libor plus 32 bps
|
| Price: | Par
|
| Yield: | Libor plus 32 bps
|
| Price guidance: | Libor equivalent to three-year fixed-rate notes
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Feb. 12, 2021
|
| Coupon: | 2.3%
|
| Price: | 99.903
|
| Yield: | 2.32%
|
| Spread: | Treasuries plus 60 bps
|
| Price guidance: | Treasuries plus 65 bps area, tightened from Treasuries plus high-60 bps area
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 13, 2026
|
| Coupon: | 3%
|
| Price: | 99.6
|
| Yield: | 3.046%
|
| Spread: | Treasuries plus 80 bps
|
| Price guidance: | Treasuries plus 85 bps area, tightened from Treasuries plus high-90 bps area
|
|
|
| 30-year tap
|
| Amount: | $500 million
|
| Maturity: | June 1, 2044
|
| Coupon: | 4.125%
|
| Price: | 100.884
|
| Yield: | 4.072%
|
| Spread: | Treasuries plus 105 bps
|
| Price guidance: | Treasuries plus 110 bps area, tightened from Treasuries plus 120 bps area
|
| Total issue size: | $1 billion, including $500 million priced on May 28, 2014
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
