By Andrea Heisinger
New York, Feb. 9 - News America Inc. sold $2.5 billion of notes (Baa1/BBB+/BBB+) in two parts on Wednesday, a source away from the offering said ahead of the market close.
A $1 billion tranche of 4.5% 10-year notes priced at 99.38 to yield 4.578% with a spread of Treasuries plus 95 basis points.
A $1.5 billion tranche of 6.15% 30-year bonds sold at 99.485 to yield 6.188% with a spread of 150 bps over Treasuries.
The deal was done under Rule 144A and Regulation S.
J.P. Morgan Securities LLC ran the books.
Proceeds are being used for general corporate purposes, including the refinancing of near-term maturities.
The subsidiary of media company News Corp. is based in New York City.
| Issuer: | News America Inc.
|
| Issue: | Notes
|
| Amount: | $2.5 billion
|
| Bookrunner: | J.P. Morgan Securities LLC
|
| Distribution: | Rule 144A and Regulation S
|
| Trade date: | Feb. 9
|
| Settlement date: | Feb. 16
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
| Fitch: BBB+
|
|
|
| 10-year notes
|
| Amount: | $1 billion
|
| Maturity: | Feb. 15, 2021
|
| Coupon: | 4.5%
|
| Price: | 99.38
|
| Yield: | 4.578%
|
| Spread: | Treasuries plus 95 bps
|
| Call: | Make-whole at Treasuries plus 15 bps
|
|
|
| 30-year bonds
|
| Amount: | $1.5 billion
|
| Maturity: | Feb. 15, 2041
|
| Coupon: | 6.15%
|
| Price: | 99.485
|
| Yield: | 6.188%
|
| Spread: | Treasuries plus 150 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
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