Discovery Communications discovers cash


Is this a sign of at least a slight thawing of the lending market? Discovery Communications announced that it completed syndication of a new $500 million in incremental term loans under its existing credit facility.

Discovery Communications Inc. said its subsidiary, Discovery Communications Holding LLC (DCH), had completed the syndication of $500 million principal amount of incremental Term C loans under DCH’s existing credit facility, “at an initial interest rate of LIBOR plus 3.25%, with a LIBOR floor of 2.00%, and otherwise on terms similar to the existing credit facility.”

In addition to other expenses of the transaction, the borrower said the Term C loans will be made net of a 2.00% upfront fee. The new Term C facility is a supplement to the existing credit agreement and will mature in May 2014, and prior to that date will amortize in quarterly principal installments totaling 1% annually beginning on June 30, 2009.

“Net proceeds of the incremental Term C loans will be used to refinance outstanding indebtedness. The closing of the new credit facility is expected later this week and is subject to customary closing conditions,” Discovery said.