New York, September 10, 2014 -- Moody's Investors Service assigned a Baa1 rating to 21st Century Fox America Inc's proposed benchmark size senior unsecured notes offering. 21st Century Fox America Inc. is an indirect wholly owned subsidiary of Twenty-First Century Fox, Inc. ("FOX"). The new notes are anticipated to be split in ten and thirty year maturities, for a total in the range of approximately $ 1 billion. The new notes are senior unsecured obligations and will rank equally with the company's existing senior unsecured debt and future unsecured obligations. Proceeds from the offering will be used for general corporate purposes, including repayment of $750 million 5.3% senior notes due this year. Debt-to-EBITDA incorporating Moody's standard adjustments was around 3.2x as of 06/30/2014. We believe that FOX is taking advantage of the low interest rate environment and Moody's anticipates that over time, the interest saving from this debt offering will outweigh the short-term negative cash carry. The rating outlook is stable.
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