NBCUniversal announced Friday (7/1) that it had closed its $1.025 billion purchase of The Blackstone Group’s 50% interest in Universal Orlando. NBCU now owns 100% of the theme park.
The purchase price was funded with NBCU’s existing credit facility and a $250 million loan from an affiliate of Comcast, which is the majority owner of NBCU.
With NBCU fully in control of Universal City Development Partners (UCDP), the entity which has public bonds for Universal Orlando, it is now moving to reduce UCDP’s debt, which carries higher interest rates than NBCU and Comcast debt. UCDP is making an equity offering of approximately $240 million to NBCU, with the proceeds to be used to redeem 35% of UCDP’s two bond issues. Following the redemption, $260 million principal amount of Senior Notes and $146.25 million of Senior Subordinated Notes will remain outstanding.