Discovery announces pricing of $30B debt offering by Magallanes, a subsidiary of AT&T
Mar. 10, 2022 6:31 AM ETDiscovery, Inc. (DISCA), DISCK, DISCBTBy: Niloofer Shaikh, SA News Editor66 Comments
- Discovery (NASDAQ:DISCA) announced that Magallanes (Spinco), a wholly-owned subsidiary of AT&T Inc. (NYSE:T) has priced offering of $30B senior unsecured notes in 11 tranches.
- Comprising of $1.75B of 3.428% senior notes due 2024, $500M of 3.528% senior notes due 2024, $1.75B of 3.638% senior notes due 2025, $500M of 3.788% senior notes due 2025, $4B of 3.755% senior notes due 2027, $1.5B of 4.054% senior notes due 2029, $5B of 4.279% senior notes due 2032, $4.5B of 5.050% senior notes due 2042, $7B of 5.141% senior notes due 2052, $3B of 5.391% senior notes due 2062 and $500M of Floating Rate senior notes due 2024.
- Private offering is expected to be completed on or about March 15, 2022.
- Spinco intends to use the net proceeds to fund the special cash payment to AT&T.
- The selling securityholders will receive the notes offered by them from AT&T in exchange for certain outstanding AT&T debt held or acquired by affiliates of the selling securityholders.
- Discovery and AT&T (T) are tracking toward a mid- to late-April close to their deal to combine media businesses into the new Warner Bros. Discovery, now that Discovery's set its stockholder meeting for March 11.