Fresh from its dramatic victory in its bidding war with Fox to acquire Sky (for £30bn), the US cable giant Comcast has completed the fourth biggest corporate deal issue in US history to fund the deal.
Philadelphia-based Comcast issued a $27bn raft of bonds across the maturity spectrum in a deal that attracted orders of $88bn.
As Quilter Investors credit analyst Tim Li observes, “The market is hungry for new issuance and this one hardly touched the sides. However, owning Sky will double Comcast’s debt to around $114bn. This puts it in an exclusive club; only the US telcos AT&T and Verizon carry more debt.
“Comcast needs to reduce its leverage or it will lose its single A credit rating, which will make life very hard for the company,” he says.