Fox Corp., 21st Century Fox Inc.'s wholly owned subsidiary and the company to be spun off in connection with 21st Century Fox's combination with Walt Disney Co., priced five series of senior unsecured notes.
21st Century Fox will issue $750 million of 3.666% senior notes due 2022; $1.25 billion of 4.030% senior notes due 2024; $2 billion of 4.709% senior notes due 2029; $1.25 billion of 5.476% senior notes due 2039; and $1.55 billion of 5.576% senior notes due 2049, the company said Jan. 15.
21st Century Fox will receive gross proceeds of $6.8 billion from the debt offering, which is expected to close on Jan. 25.
The company plans to use the net proceeds together with available cash on its balance sheet and borrowings under the revolving credit facility that it expects to enter into, if needed, mainly to fund a cash dividend of $8.5 billion in immediately available funds to the company before the consummation of the distribution of all of the issued and outstanding common stock to 21st Century Fox stockholders on a pro rata basis, and to pay fees and expenses in connection with this offering and the other transactions.
21st Century Fox will fully and unconditionally guarantee the senior notes on a senior unsecured basis.