Disney, Comcast Protection Converge After Hostile Bid

Five-year credit protection on The Walt Disney Co. and Comcast Corp. started to converge last Wednesday after the cable giant made a $66 billion offer for the Magic Kingdom.

  • 13 Feb 2004
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Five-year credit protection on The Walt Disney Co. and Comcast Corp. started to converge last Wednesday after the cable giant made a $66 billion offer for the Magic Kingdom. Credit-default swaps on Disney widened around five basis points to 57 basis points after the bid was publicized, while protection on Comcast tightened by around 3 basis points to trade at 67 basis points, according to a New York-based trader. Clients as diverse as corporates and hedge funds were actively trading the name, he says.

Trading on news of the acquisition formed one of the more predictable market trends last week. In other credits, spreads snap in violently at the beginning of the week. The tightening was viewed as a correction to the overall widening trend that had been prevalent since the beginning of the month. Traders say the market now appears to be range-bound.

Fitch Ratings rates Disney triple-B plus with a negative outlook while Comcast gets a triple-B rating with a stable outlook. Michael Weaver, managing director at Fitch in Chicago, says if the acquisition goes ahead the combined entity is likely to be rated triple-B plus. As no definitive agreement has been reached and there is no indication as to whether the possible acquisition would be accepted, it is too early to say whether it would hold a stable outlook. Disney does, however, continue to suffer from a poor operating environment as well as excess debt leverage, which the company needs to address, notes Weaver.

  • 13 Feb 2004

All International Bonds

Rank Lead Manager Amount $m No of issues Share %
  • Last updated
  • Today
1 Citi 35,941.13 111 8.93%
2 Barclays 31,588.47 86 7.85%
3 JPMorgan 27,799.55 107 6.91%
4 Bank of America Merrill Lynch 27,706.86 75 6.88%
5 HSBC 21,949.38 82 5.45%

Bookrunners of All Syndicated Loans EMEA

Rank Lead Manager Amount $m No of issues Share %
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  • 17 Jan 2017
1 Commerzbank Group 114.00 1 66.16%
2 CaixaBank 37.05 1 21.50%
3 UniCredit 10.62 1 6.17%
3 BNP Paribas 10.62 1 6.17%
Subtotal 172.30 3 100.00%

Bookrunners of all EMEA ECM Issuance

Rank Lead Manager Amount $m No of issues Share %
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  • 17 Jan 2017
1 SG Corporate & Investment Banking 770.06 2 16.80%
2 Goldman Sachs 656.16 2 14.32%
3 JPMorgan 527.28 4 11.50%
4 Emirates NBD PJSC 408.38 1 8.91%
5 Deutsche Bank 321.53 3 7.01%