What is the main purpose of this 8-K filing?

The main purpose of this 8-K filing is to disclose Amendment No. 1 to Discovery Communications, Inc.'s Credit Agreement. This amendment modifies the terms of the company's senior credit facility, primarily by lowering interest rates and extending the loan maturity date.

How will these changes in the Credit Agreement affect Discovery's borrowing costs?

The amendment is expected to reduce Discovery's borrowing costs. The 'Applicable Rate' for various loan types (eurocurrency, base rate, swing line) has been decreased, and the facility fee has also been reduced. These lower rates are tied to the company's credit ratings, suggesting potentially improved financial health or market conditions.

What is the impact of the extended maturity date?

The extension of the senior credit facility's maturity date from October 11, 2013, to October 12, 2015, provides Discovery Communications with greater financial flexibility and a longer runway to manage its debt obligations. This can reduce near-term refinancing risk and allow the company to focus on its operational and strategic goals.

Who are the key parties involved in this amended credit agreement?

The key parties involved are Discovery Communications, LLC (the Borrower), Discovery Communications, Inc. (the Guarantor), the various Lenders party to the agreement, and Bank of America, N.A. as the Administrative Agent.

WBD 8-K: Material Agreements & Financial Events

Summary

This 8-K filing from Discovery Communications, Inc. (WBD), dated August 8, 2011, reports on Amendment No. 1 to its Credit Agreement originally dated October 13, 2010. The primary purpose of this amendment is to modify the terms of Discovery's senior credit facility, reflecting a more favorable borrowing environment for the company. Key changes include a reduction in the 'Applicable Rate' for various loan types, leading to lower interest costs for the company on its debt. Additionally, the maturity date of the senior credit facility has been extended by over two years. These adjustments indicate improved creditworthiness or negotiation power for Discovery Communications, Inc., which could positively impact its financial flexibility and cost of capital.

Key Highlights

1Amendment No. 1 to the Credit Agreement entered into on August 8, 2011.
2Reduced 'Applicable Rate' for eurocurrency rate loans and letter of credit fees (now 75-145 basis points based on credit ratings).
3Reduced 'Applicable Rate' for base rate loans and swing line loans (now 0-45 basis points based on credit ratings).
4Lowered facility fee, now ranging from 12.5 to 30 basis points based on credit ratings.
5Extended the maturity date of the senior credit facility from October 11, 2013, to October 12, 2015.
6Discovery Communications, LLC is the borrower, and Discovery Communications, Inc. is the guarantor.
7Bank of America, N.A. serves as the administrative agent.

Warner Bros. Discovery, Inc. 8-K Report, Material Agreement (Aug 9, 2011)

Summary

Key Highlights

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