Summary
Comcast Corporation (CMCSA) has formally notified The Bank of New York Mellon, as trustee, of its intention to transition its outstanding Floating Rate Notes due 2024 from the soon-to-be-discontinued three-month USD LIBOR to the three-month CME Term SOFR Reference Rate plus a tenor spread adjustment. This transition is being executed in accordance with the Adjustable Interest Rate (LIBOR) Act and its implementing rules, reflecting a broader industry shift away from LIBOR due to regulatory changes. The change will become effective for interest rate determinations made after June 30, 2023. Comcast has identified the specific tenor spread adjustment of 0.26161% as mandated by the regulatory framework. This proactive measure ensures compliance and operational continuity for its debt obligations as LIBOR phases out, with minimal expected impact on the determination of interest payments for the Notes after the effective date.
Key Highlights
- 1Comcast is transitioning its Floating Rate Notes due 2024 away from USD LIBOR.
- 2The new benchmark rate will be the three-month CME Term SOFR Reference Rate.
- 3A tenor spread adjustment of 0.26161% will be applied to Term SOFR.
- 4The transition is in accordance with the Adjustable Interest Rate (LIBOR) Act and related Federal Reserve rules.
- 5The change will be effective for interest rate determinations made after June 30, 2023.
- 6This action addresses the planned cessation of USD LIBOR.
- 7The notice is an official notification to the trustee, with separate communication to noteholders to follow.