Summary
Discovery Communications, Inc. (now Warner Bros. Discovery, Inc.) filed an 8-K on March 12, 2015, to report on a significant debt issuance. The company, through its subsidiary Discovery Communications, LLC (DCL), entered into an underwriting agreement to issue €600 million in 1.90% Senior Notes due 2027. This offering was conducted under a previously filed registration statement and is expected to close on March 19, 2015. The net proceeds of approximately €594.2 million are earmarked for specific purposes, primarily to repay a portion of the company's 3.700% Senior Notes due June 2015. The remaining funds will be utilized for general corporate purposes, including potential acquisitions, other debt refinancing, working capital, capital expenditures, and stock repurchases. The notes are guaranteed by the parent company, Discovery Communications, Inc., and an application has been made for their listing on the Irish Stock Exchange.
Key Highlights
- 1Discovery Communications, Inc. (DCL) issued €600 million in 1.90% Senior Notes due 2027.
- 2The offering was conducted through an underwriting agreement with a syndicate of major financial institutions.
- 3Net proceeds are estimated at approximately €594.2 million.
- 4Primary use of proceeds is to repay maturing 3.700% Senior Notes due June 2015.
- 5Funds will also support general corporate purposes, including acquisitions and debt refinancing.
- 6The notes are fully and unconditionally guaranteed by the parent company, Discovery Communications, Inc.
- 7Application has been made to list the notes on the Irish Stock Exchange.