Fox holds fixed income investor calls for possible bond offering

By Cristal Cody

Tupelo, Miss., Jan. 11 – Fox Corp. (Baa2/BBB) began holding fixed income investor calls on Friday for a possible bond offering, according to a market source.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and Goldman Sachs & Co. LLC are the arrangers.

On Friday, Moody’s Investors Service assigned the new company a Baa2 senior rating, while S&P Global Ratings assigned a BBB rating.

Moody’s said the rating follows the company’s announcement to raise $6.5 billion to fund a one-time dividend to its parent predecessor company, 21st Century Fox America, Inc. The dividend will be used to pay the tax liability that will be created when 21st Century Fox spins off assets before it is acquired by Walt Disney Co.

S&P said in a ratings release that in conjunction with the spinoff, Fox will issue senior debt with the proceeds from that issuance, along with cash on the balance sheet, to fund the dividend.

The mass media company is based in New York City.

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