Discovery of a Cash Source


Discovery-Comm_Cable programming firm Discovery Communications is raising cash for a variety of purposes. Only part of the proceeds of a note offering will be going toward soon-to-be-due prior debt instruments.

It is offering a $300M package at 3.45%, due in 2025.

After expenses, it is expected to bring in $296.8M.

Part of that will go toward repaying part of a 3.7% senior note package that matures this June.

But there are lots of other plans for the cash, including:

* acquisition of other companies or businesses

* repayment and refinancing of debt

* working capital

* capital expenditures

* repurchase by the Company of its capital stock.

Until its ready to apply the proceeds, Discovery will consider placing cash into short-term investments.

According to Discovery, J.P. Morgan Securities LLC, Citigroup Global Markets Inc., RBS Securities Inc., BNP Paribas Securities Corp., Goldman, Sachs & Co. and Wells Fargo Securities, LLC acted as joint book-running managers for the offering. Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc. and SunTrust Robinson Humphrey, Inc. acted as co-managers for the offering.