Comcast Raises $3B in Bond Market

Cable Operator Sets Two Bond Offerings: 10 Years and 30 Years
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Comcast, the nation’s largest cable operator, raised $3 billion in the debt market Monday afternoon.

The company issued the total amount through two bond offerings, one maturing in 10 years and the other in 30 years. The 10-year note is $1 billion in size, becomes due Nov. 15, 2017, and carries an interest rate of 6.30%. The 30-year note is $2 billion in size, becomes due Aug. 15. 2037. and carries an interest rate of 6.95%.

The deal was arranged by Goldman Sachs, Barclays Capital and Morgan Stanley.

The transaction will settle Aug. 23.

Comcast is rated Baa2 by Moody’s Investor Service and BBB+ by Standard & Poor’s.

This is the first issue for a cable company since the onset of the capital-market woes in July.

The percentage spread of Comcast bonds over comparable U.S. Treasuries spiked in mid-July due to the credit crisis, making it more expensive for the company to raise debt in the bond market. Those spreads have since regained the lost ground, and the gradual reopening of the investment-grade bond market last week created an opportunity for Comcast to jump in and raise the funds.

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