By Devika Patel
Knoxville, Tenn., Sept. 4 – Walt Disney Co. priced $7 billion of notes (A2/A/A) in six parts on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
There were floating-rate notes in two tranches and fixed-rate notes in four tranches.
The company sold $500 million of two-year floaters at Libor plus 25 basis points at par.
Disney priced $500 million of three-year floaters at Libor plus 39 bps at par.
The company priced $500 million of 1.65% three-year notes at a spread of Treasuries plus 35 bps. These notes priced at 99.783 to yield 1.725%.
There was $1.5 billion of 1.75% five-year notes priced at a spread of Treasuries plus 50 bps. These notes priced at 99.592 to yield 1.836%.
The company sold $2 billion of 2% 10-year notes at a spread of Treasuries plus 70 bps. These notes priced at 98.517 to yield 2.166%.
Disney priced $2 billion of 2.75% 30-year notes at a spread of Treasuries plus 95 bps. These notes priced at 96.775 to yield 2.912%.
The notes will be guaranteed by TWDC Enterprises 18 Corp.
Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and RBC Capital Markets LLC were the bookrunners.
Proceeds will be used for a cash tender offer for the company’s 8.25% notes due 2096, 7.9% notes due 2095, 7.75% notes due 2045, 6.15% notes due 2041, 8.15% notes due 2036, 7.85% notes due 2039, 6.75% notes due 2038, 6.9% notes due 2039, 6.15% notes due 2037, 6.4% notes due 2035, 6.65% notes due 2037, 5.4% notes due 2043 and 8.45% notes due 2034, to prepay in full the $3,175,000,000 of outstanding principal under its credit facility and for general corporate purposes.
Walt Disney is a Burbank, Calif.-based entertainment and media company.
| Issuer: | Walt Disney Co.
|
| Guarantor: | TWDC Enterprises 18 Corp.
|
| Amount: | $7 billion
|
| Description: | Floating-rate notes, fixed-rate notes
|
| Bookrunners: | Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., HSBC Securities (USA) Inc. and RBC Capital Markets LLC
|
| Co-managers: | CastleOak Securities LP, Drexel Hamilton, LLC, Samuel A. Ramirez & Co. Inc. and Williams Capital Group LP
|
| Trade date: | Sept. 3
|
| Settlement date: | Sept. 6
|
| Ratings: | Moody’s: A2
|
| S&P: A
|
| Fitch: A
|
|
|
| Two-year floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2021
|
| Coupon: | Libor plus 25 bps
|
| Price: | Par
|
| Yield: | Libor plus 25 bps
|
| Call features: | Non-callable
|
|
|
| Three-year floaters
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2022
|
| Coupon: | Libor plus 39 bps
|
| Price: | Par
|
| Yield: | Libor plus 39 bps
|
| Call features: | Non-callable
|
|
|
| Three-year notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2022
|
| Coupon: | 1.65%
|
| Price: | 99.783
|
| Yield: | 1.725%
|
| Spread: | Treasuries plus 35 bps
|
| Call feature: | Make-whole call at Treasuries plus 7 bps
|
|
|
| Five-year notes
|
| Amount: | $1.5 billion
|
| Maturity: | Aug. 30, 2024
|
| Coupon: | 1.75%
|
| Price: | 99.592
|
| Yield: | 1.836%
|
| Spread: | Treasuries plus 50 bps
|
| Call feature: | Make-whole call at Treasuries plus 10 bps until July 30, 2024, then a par call
|
|
|
| 10-year notes
|
| Amount: | $2 billion
|
| Maturity: | Sept. 1, 2029
|
| Coupon: | 2%
|
| Price: | 98.517
|
| Yield: | 2.166%
|
| Spread: | Treasuries plus 70 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until June 1, 2029, then a par call
|
|
|
| 30-year notes
|
| Amount: | $2 billion
|
| Maturity: | Sept. 1, 2049
|
| Coupon: | 2.75%
|
| Price: | 96.775
|
| Yield: | 2.912%
|
| Spread: | Treasuries plus 95 bps
|
| Call feature: | Make-whole call at Treasuries plus 15 bps until March 1, 2049, then a par call
|
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