Discovery Communications has priced an offering of GBP 400,000,000 million aggregate principal amount of British pound-sterling-denominated 2.500 percent Senior Notes due 2024 (the "Notes").
The Notes were priced at 99.875 percent of their principal amount to yield 2.504 percent to maturity. The sale of the Notes is expected to close on September 21, 2017, subject to customary closing conditions.
The Notes will be unsecured and will rank equally with all of DCL's other unsecured senior indebtedness. The Notes will be fully and unconditionally guaranteed on an unsecured and unsubordinated basis by the Company.
DCL expects the net proceeds from the offering of the Notes to be approximately GBP 397 million after deducting the underwriting discount.
The Company intends to use the net proceeds from the Offering to fund a portion of the cash consideration payable in connection with the previously announced acquisition of Scripps Networks Interactive, Inc. ("Scripps") and to pay related fees and expenses. If the acquisition is not consummated for any reason on or prior to August 30, 2018, or if, prior to such date, the merger agreement for the acquisition is terminated, then, in either case, the Company will be required to redeem the Notes in a special mandatory redemption. The acquisition is expected to be completed in the first quarter of 2018, subject to the receipt of required stockholder and regulatory approvals and certain other customary closing conditions.
Goldman Sachs & Co. LLC, Citigroup Global Markets Limited and Credit Suisse Securities (Europe) Limited will act as the active joint book-running managers for the Offering. – PR Newswire