21st Century Fox America arranges $1.4 billion revolver due 2020

By Toni Weeks

San Luis Obispo, Calif., May 21 – 21st Century Fox America, Inc. terminated its existing $2 billion revolving credit agreement and entered into a new credit agreement on Thursday, according to an 8-K filing with the Securities and Exchange Commission. Parent company Twenty-First Century Fox, Inc. is the guarantor.

The new agreement, which matures May 21, 2020, provides for a $1.4 billion five-year unsecured revolving credit facility with a sublimit of $250 million (or its equivalent in euros) for the issuance of letters of credit.

The borrower may increase the credit facility up to a maximum amount of $2 billion, and it may extend the agreement by up to two one-year periods.

Borrowings bear interest at Libor plus 79.5 basis points to 130 bps.

21st Century Fox America may terminate, in whole or in part, the unused portion of the credit facility amount under the new agreement at any time during its term. Once terminated, a commitment may not be reinstated.

The agreement requires the company to maintain a leverage ratio of no more than 4.5 to 1.0.

Proceeds may be used for general corporate purposes.

JPMorgan Chase Bank, NA and Citibank, NA are co-administrative agents, with JPMorgan as designated agent. Bank of America, NA is syndication agent. Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are co-documentation agents. J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Bank of America Merrill Lynch are the joint lead arrangers and joint bookrunners.

The mass media company is based in New York.

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