sources and uses comcast
DESCRIPTION
Surces and uses pitchbookTRANSCRIPT
Sources and Uses
1
Sources of funds Cash 10,000.00
Equity
Common stock -
Preferred @5.25% 725.00
Options -
Total equity 725.00
DebtCommercial paper @0.29% 750.00 Credit facility @1.252% 1,250.00 Senior unsecured notes
Maturing 4/15/2016 @LIBOR 3mo + 0.537% 700.00 Maturing 4/15/2018 @LIBOR 3mo + 0.685% 700.00 Maturing 4/15/2018 @1.662% 1,100.00 Maturing 4/15/2019 @1.974% 1,500.00
Total debt 6,000.00
Total sources of funds 16,725.00 Uses of funds Equity purchase price 16,725.00
Total uses of funds 16,725.00
Sources of funds Cash 10,000.00
Equity
Common stock -
Preferred 725.00
Options -
Total equity 725.00
DebtCredit facility 2,000.00 Senior unsecured notes
Maturing 4/15/2016 @LIBOR 3mo + 0.537% 700.00 Maturing 4/15/2018 @LIBOR 3mo + 0.685% 700.00 Maturing 4/15/2018 @1.662% 1,100.00 Maturing 4/15/2019 @1.974% 1,500.00
Total debt 6,000.00
Total sources of funds 16,725.00
Uses of funds Equity purchase price 16,725.00
Total uses of funds 16,725.00
As of February 12, 2013 As of March 19, 2013
Breaking down transaction structureThe majority of the transaction was financed with cash
2
60%
4%
36%
Cash Equity Debt
High existing cash balance within CMCS and NBCUniversal
Confidence in the transaction given synergies and share performance
GE was divesting; preference for majority cash over stock consideration
▪ Preferred stock as debt-like currency; allows voice on NBCU board
▪ NBCUniversal – Comcast combined ability to service debt– Tap lowest cost financing options CF, CP, Senior Unsecured
– Multiple tranches smooth the maturity profile of combined Co.
– Floating mix attractive to debt investors given interest rate environment
– Issued debt under NBCU entity, with backing of Comcast Co. to reduce costs and ease book-keeping
Different debt tranches (CF, CP, unsecured notes) and preferred stock allow diversification of risk