Comcast Corporation Issues $1.285 Billion Zero Coupon Convertible Debentures Due December 2020
Comcast Corporation announced the sale of $1.285 billion principal amount at maturity of its zero coupon convertible debentures due 2020 (the "Debentures"). The Debentures will be sold at 77.941% of par, for gross proceeds to the Company of approximately $1.0 billion, and will mature on December 19, 2020.
The Debentures will carry a yield to maturity of 1.25%. The Debentures may be converted, subject to certain restrictions, into shares of Comcast Class A Special Common Stock at the option of the holder at a conversion rate of 14.2566 shares per $1,000 principal amount at maturity, representing an initial conversion price of $54.67 per share. Debenture holders may require the Company to repurchase the Debentures at accreted value at various points throughout the life of the security. The Company may redeem the Debentures in whole or in part on or after December 19, 2005.
Credit Suisse First Boston will serve as underwriter of the Debenture offering. Comcast has also granted the underwriter an over-allotment option to purchase up to an additional $193 million principal amount at maturity of Debentures.
Comcast will use the net proceeds from the offering for general corporate purposes, which may include a loan to our majority-owned subsidiary, Comcast Cable, to enable it to repay a portion of the borrowings under its existing commercial paper program and under its bank credit facilities.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful. A prospectus relating to the Debentures may be obtained from Credit Suisse First Boston, New York, New York.
Comcast Corporation (www.comcast.com) is principally involved in the development, management and operation of broadband cable networks, and in the provision of electronic commerce and programming content. Comcast Cable is the third largest cable company in the United States and, incorporating pending cable transactions, will serve more than 8.2 million subscribers. Comcast's commerce and content businesses include majority ownership of QVC, Comcast-Spectacor, Comcast SportsNet, and The Golf Channel, a controlling interest in E! Networks, and other programming investments.
Comcast's Class A Special and Class A Common Stock are traded on The Nasdaq Stock Market under the symbols CMCSK and CMCSA, respectively.