News Corp. driving by with $500 million 10-year notes; initial talk low-to-mid 5% area

By Paul A. Harris

Portland, Ore., Feb. 8 – News Corp. plans to price a $500 million offering of 10-year senior notes (Ba1/BB+) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance is in the low-to-mid 5% area.

Citigroup Global Markets Inc. is the left bookrunner. BofA Securities Inc., J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, HSBC Securities (USA) Inc. and Deutsche Bank Securities Inc. are the joint bookrunners.

ANZ Securities Inc., nabSecurities LLC, Loop Capital Markets LLC, Westpac Capital Markets LLC, Commonwealth Bank of Australia, MUFG and AmeriVet Securities Inc. are the co-managers.

The Rule 144A and Regulation S for life notes become callable after five years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the full coupon and have a 101% poison put.

The notes come with an investment-grade style covenant package, including limitations on liens and mergers and consolidations, among other things, and subject to certain exceptions, the same as News Corp.'s existing 3 7/8% senior notes due 2029.

The New York City-based news content provider plans to use the proceeds for general corporate purposes, including the purchase of the Base Chemicals and OPIS businesses.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.