By Andrea Heisinger
New York, Aug. 20 - News America Inc. priced $1 billion notes (Baa1/BBB+/BBB) in two tranches Thursday, according to an informed source and a press release.
The $400 million of 5.65% 11-year notes priced at 99.703 to yield 5.687%, or Treasuries plus 223 basis points. The notes have a make-whole call at Treasuries plus 35 bps.
The $600 million of 6.9% 30-year notes priced at 99.802 to yield 6.916%, or Treasuries plus 265 bps. The notes have a make-whole call at Treasuries plus 40 bps.
The deal was done via Rule 144A and Regulation S.
In general, the sale "went very well," a source close to it said. "It priced correctly and actually tightened in a little."
Bookrunners were Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.
The subsidiary of media conglomerate News Corp. is based in New York City.
| Issuer: | News America Inc.
|
| Issue: | Notes
|
| Total amount: | $1 billion
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc.
|
| Distribution: | Rule 144A/Regulation S
|
| Trade date: | Aug. 20
|
| Settlement date: | Aug. 25
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB
|
|
|
| 11-year notes
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2020
|
| Coupon: | 5.65%
|
| Price: | 99.703
|
| Yield: | 5.687%
|
| Spread: | Treasuries plus 223 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
|
|
| 30-year notes
|
| Amount: | $600 million
|
| Maturity: | Aug. 15, 2039
|
| Coupon: | 6.9%
|
| Price: | 99.802
|
| Yield: | 6.916%
|
| Spread: | Treasuries plus 265 bps
|
| Call: | Treasuries plus 40 bps
|
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