Comcast completes exchange and cash offers for $480 million in new 2037 notes

Comcast Corporation (NASDAQ:CMCSA), a media giant with a market capitalization of $111 billion and a "GOOD" financial health rating according to InvestingPro, announced Thursday that it has completed previously disclosed private exchange and cash offers related to its outstanding notes. The information was disclosed in a press release statement and detailed in a filing with the U.S. Securities and Exchange Commission. Analysis from InvestingPro suggests the stock is currently trading below its Fair Value, presenting a potential opportunity for value investors.

According to the filing, Comcast finalized the exchange of its 4.150% Notes due 2028 and 4.550% Notes due 2029 for up to $1 billion in aggregate principal amount of new notes due 2037. The company issued $480,046,000 in aggregate principal amount of these new notes. The new notes will bear interest at a rate of 5.168% per year and mature on January 15, 2037. Interest payments will be made semiannually on January 15 and July 15, starting January 15, 2026. This debt management strategy aligns with the company’s current debt-to-equity ratio of 1.05 and strong free cash flow yield of 18%.

The new notes are guaranteed on an unsecured and unsubordinated basis by Comcast Cable Communications, LLC and NBCUniversal. They were issued under an existing indenture agreement, as supplemented by prior agreements, and an officers’ certificate.

Comcast and the guarantors have also entered into a registration rights agreement with the joint lead dealer managers for the exchange offers. Under this agreement, Comcast has committed to use commercially reasonable efforts to file a registration statement with the SEC to offer to exchange the new notes for registered notes with substantially identical terms, except that the registered notes will not have transfer restrictions or provide for an increase in the annual interest rate.

The new notes have not been registered under the U.S. Securities Act of 1933 and may only be offered or sold under an exemption from registration.

This report is based on a press release statement and the company’s SEC filing.

In other recent news, Comcast has finalized its exchange and cash offers for several series of its outstanding notes, resulting in the issuance of $692 million in new debt. The new notes, maturing in 2037, will carry an annual interest rate of 5.168%, with interest payments starting in 2026. Additionally, Comcast’s stock price target has been lowered by KeyBanc to $43 due to concerns over weak broadband subscriber numbers, though the firm maintains an Overweight rating. Meanwhile, Comcast has opened a new Flagship Lift Zone in Philadelphia, investing over $1 million to enhance digital skills and job training. The facility will provide free high-speed WiFi and support various community programs. In a separate development, Comcast-owned NBCUniversal has reached a long-term deal with Google to keep NBC shows on YouTube TV, ensuring continued access to popular programs. Finally, Roku and FreeWheel have expanded their partnership to enhance the streaming ad ecosystem, focusing on improving targeting and efficiency.

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