8-KMaterial AgreementsFinancial EventsRegulation FD+1

COMCAST CORP 8-K Report, Material Agreement (May 31, 2016)

Filed May 31, 2016For Securities:CMCSACCZ

Summary

Comcast Corporation (CMCSA) filed an 8-K report on May 31, 2016, detailing material definitive agreements related to its credit facilities. The company entered into a new $7 billion unsecured revolving credit facility, replacing a prior $6.25 billion facility. This new facility, set to expire on May 26, 2021, has provisions for up to a $10 billion increase in commitments and can be extended to May 26, 2023. It is guaranteed by Comcast Cable Communications, LLC and NBCUniversal Media, LLC, and includes customary covenants and a leverage ratio limitation. In conjunction with this, Comcast terminated its previous credit agreement. Additionally, a separate $1.5 billion revolving credit agreement was entered into by NBCUniversal Enterprise, Inc., replacing its prior $1.35 billion facility. This NBCUniversal facility is guaranteed by Comcast and Comcast Cable Communications, LLC, and also has options for commitment increases and maturity extensions. These actions indicate Comcast's strategic management of its liquidity and debt obligations, ensuring robust financial flexibility.

Key Highlights

  • 1Comcast entered into a new $7 billion unsecured revolving credit facility, increasing its capacity from the previous $6.25 billion facility.
  • 2The new credit facility has a maturity date of May 26, 2021, with options to extend it to May 26, 2023.
  • 3Comcast has the flexibility to increase the credit facility's commitment up to a total of $10 billion.
  • 4The new facility is guaranteed by key subsidiaries: Comcast Cable Communications, LLC and NBCUniversal Media, LLC.
  • 5The previous $6.25 billion credit agreement, dated June 6, 2012, was terminated in connection with the new agreement.
  • 6NBCUniversal Enterprise, Inc. entered into a separate $1.5 billion revolving credit agreement, replacing a prior $1.35 billion facility.
  • 7The NBCUniversal facility is guaranteed by Comcast and Comcast Cable Communications, LLC and also includes provisions for commitment increases and maturity extensions.

Frequently Asked Questions

This 8-K filing announces Comcast Corporation's entry into a new, larger revolving credit facility and the termination of its previous one. It also discloses a new credit facility for its subsidiary, NBCUniversal Enterprise.

Comcast has increased its primary revolving credit facility from $6.25 billion to $7 billion, with the option to expand it further up to $10 billion. NBCUniversal Enterprise also has a new $1.5 billion facility.

The new facility is for $7 billion, is unsecured, matures on May 26, 2021, and is guaranteed by Comcast Cable Communications, LLC and NBCUniversal Media, LLC. It contains customary covenants, including a leverage ratio limitation.

As of the filing date, Comcast had not borrowed any funds under the new credit agreement, although certain existing letters of credit had been continued, reducing the available borrowing capacity.