Walt Disney Company (DIS.US) issued its first investment-grade U.S. dollar bond in four years, locking in borrowing costs as spreads fall.

The Walt Disney Company (DIS.US) returned to the US dollar investment-grade bond market for the first time since 2020, launching a high-grade dollar bond offering on Tuesday, joining a trend of companies capitalizing on lower borrowing costs. According to sources, the Walt Disney Company's bond issuance this time will be divided into four tranches, ranging from 3 years to 10 years. The initial pricing guidance for the longest-dated bond is about 0.85 percentage points above comparable US Treasury securities, with the funds raised to be used for general corporate purposes. This transaction is one of eight issuances in the US investment-grade bond market on Tuesday. Just the day before, Alphabet (GOOG.US, GOOGL.US) raised $20 billion through a bond offering, with demand exceeding $100 billion, highlighting strong investor interest in high-grade corporate bonds. Sources said that the bookrunners for the Walt Disney Company's bond issuance include BNP Paribas, Citigroup, Deutsche Bank, JPMorgan, Sumitomo Mitsui Financial Group, Inc. Sponsored ADR, and U.S. Bancorp. The expected ratings for the new issuance are Moody's Corporation A2 and S&P Global, Inc. A. Market participants believe that, in the current environment of narrowed financing spreads and strong capital demand, Walt Disney Company's decision to re-enter the bond market at this time will help to raise funds on relatively favorable terms and reflects the continued activity in the US investment-grade bond market.