Summary
Comcast Corporation (CMCSA) filed an 8-K on January 9, 2013, to report on an upcoming debt offering. The company announced its intention to consummate the issuance and sale of a substantial amount of notes, totaling $2.95 billion, on January 14, 2013. These notes are structured into three tranches with varying maturities and interest rates: $750 million in 2.850% Notes due 2023, $1.7 billion in 4.250% Notes due 2033, and $500 million in 4.500% Notes due 2043. This debt issuance, managed by Barclays Capital Inc., Goldman, Sachs & Co., and RBS Securities Inc., is backed by guarantees from Comcast's cable subsidiaries. The offering is being made under Comcast's existing shelf registration statement filed on Form S-3. For investors, this filing signals Comcast's active capital management and its strategy to raise funds through long-term debt, which could be used for general corporate purposes, capital expenditures, or acquisitions.
Key Highlights
- 1Comcast to issue $2.95 billion in new notes on January 14, 2013.
- 2Notes include $750M of 2.850% Notes due 2023.
- 3Notes include $1.7B of 4.250% Notes due 2033.
- 4Notes include $500M of 4.500% Notes due 2043.
- 5Debt issuance is guaranteed by key Comcast cable subsidiaries.
- 6Offering is conducted under a previously filed Form S-3 registration statement.
- 7Underwriting syndicate includes Barclays Capital Inc., Goldman, Sachs & Co., and RBS Securities Inc.