Banks led by Morgan Stanley have launched a $750 million leveraged loan as a key component of Comcast Corp.'s ongoing spinoff of its cable television assets into Versant Media Group Inc.
The financing—part of a broader $3.5 billion debt package—is designed to provide Versant with operational liquidity and financial flexibility post-separation, ensuring networks like MSNBC, CNBC, USA Network, E!, SYFY, Golf Channel, and Oxygen can continue broadcasting amid cord-cutting pressures and shifting media economics.
Contrary to some headlines suggesting Comcast is directly "receiving" the loan to "keep them operating," the funds are earmarked for Versant, the soon-to-be-independent entity, to support its standalone viability.
Versant, named in May 2025 to evoke "versatility and adaptability," will encompass:
- Core Cable Networks: MSNBC (rebranding to "MS NOW" by late 2025 for autonomy from NBC News), CNBC (financial news, dropping NBC peacock logo), USA Network (entertainment/sports), E! (celebrity/pop culture), SYFY (sci-fi), Oxygen (true crime), and Golf Channel (sports).
- Digital Assets: Fandango (ticketing), Rotten Tomatoes (reviews), GolfNow (reservations), and SportsEngine (youth sports tech), which already contribute ~20% of revenue through streaming and apps.
The spinoff, led by ex-NBCUniversal exec Mark Lazarus as CEO, is slated for completion by year-end 2025, pending shareholder and regulatory approval. Comcast Chair Brian Roberts will retain a one-third voting stake, and shares will trade on Nasdaq under ticker "VSNT." Analysts view it as a strategic pivot: Versant can pursue acquisitions (e.g., other cable bundles) without dragging on Comcast's balance sheet, while avoiding a full streaming launch to focus on brand-specific digital strategies.
This isn't bailout money for Comcast but startup capital for Versant:
- Structure: A $750 million revolving credit facility (undrawn initially), complementing $2.75 billion in term loans/notes. Total debt load: ~$3.5 billion, with pro forma net income projected at $914 million for FY 2024 and $497 million for H1 2025 after expenses.
- Purpose: Covers working capital, programming costs, and potential investments in digital growth. Comcast CFO Jason Armstrong emphasized Versant's "strong balance sheet" for scaling, noting it positions the company as an "attractive" M&A player in a consolidating industry.
- Lenders and Terms: Syndicated by Morgan Stanley; leveraged at competitive rates to appeal to investors amid high interest environments. No immediate dividend plans, but cash returns could follow stabilization.