Summary
Warner Bros. Discovery, Inc. (through its subsidiary Discovery Communications, LLC - DCL) announced on May 20, 2019, the completion of a registered offering of $1.5 billion in aggregate principal amount of senior notes. This offering consists of $750 million of 4.125% Senior Notes due 2029 and $750 million of 5.300% Senior Notes due 2049. The net proceeds from this offering are expected to be approximately $1.481 billion, after accounting for underwriting discounts and expenses. The primary use of these proceeds is to refinance existing debt, specifically to redeem approximately $1.266 billion of DCL's 2.750% Senior Notes due November 2019 and 5.050% Senior Notes due June 2020, as well as Scripps Networks Interactive, Inc.'s 2.750% Senior Notes due November 2019. Any remaining funds will be allocated for general corporate purposes, which may include acquisitions, debt repayment, working capital, capital expenditures, or stock repurchases.
Key Highlights
- 1Discovery Communications, LLC (DCL) successfully issued $1.5 billion in senior notes.
- 2The offering comprises two tranches: $750 million in 4.125% notes due 2029 and $750 million in 5.300% notes due 2049.
- 3The net proceeds are earmarked primarily for the redemption of existing, higher-interest or maturing debt obligations.
- 4Specific debt to be redeemed includes DCL's 2.750% notes due Nov 2019 and 5.050% notes due Jun 2020, and Scripps' 2.750% notes due Nov 2019.
- 5The notes are unsecured and rank equally with other unsecured senior indebtedness of DCL.
- 6Discovery, Inc. and Scripps Networks Interactive, Inc. provide full and unconditional guarantees for the notes.
- 7Remaining proceeds after debt redemptions will be used for general corporate purposes, offering flexibility for future strategic initiatives.