By Ronda Fears
Nashville, March 18 - News Corp. Finance Trust II sold an upsized $1.5 billion of 20-year exchangeables that convert into shares of British Sky Broadcasting Group plc at par to yield 0.75% with a 36% initial conversion premium.
Holders will also receive a pass-through of 75% of dividends on BSkyB shares, which currently yield 0%.
The Rule 144A issue, increased from $1.35 billion, sold at the cheap end of guidance that put the premium between 36% and 38%. The yield was in line with guidance of 0.75%.
The securities are exchangeable after one year into ordinary shares, ADSs or cash.
News Corp. said it planned to redeem its old 5% exchangeable notes, which also convert into BSkyB shares, with part of the proceeds.
Terms of the deal are:
| Issuer: | News Corp. Finance Trust II
|
| Issue: | Senior exchangeable BUCS
|
| Joint lead managers: | JPMorgan and Salomon Smith Barney
|
| Amount: | $1.5 billion, up from $1.35 billion
|
| Greenshoe: | $150 million
|
| Maturity: | March 28, 2023
|
| Coupon: | 0.75%
|
| Price: | Par
|
| Yield: | 3-month Libor plus 2.5% for five years, then 0%
|
| Conversion premium: | 0.75%
|
| Conversion price: | $54.468 or 855.90p
|
| Conversion ratio: | 18.359 ADSs or 1.168 ordinary shares
|
| Call: | Non-callable for seven years
|
| Put: | In years seven, 10 and 15
|
| Expected ratings: | Moody's: Baa3
|
| S&P: BBB-
|
| Settlement: | March 21
|
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