Fox signs new five-year revolver with Citigroup for $1 billion

By William Gullotti

Buffalo, N.Y., June 15 – Fox Corp. entered into a credit agreement on Wednesday with Citibank, NA as administrative agent, providing for a $1 billion five-year unsecured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The maturity date is June 14, 2028, which may be extended for up to two additional one-year periods at the company’s request.

Fox may request an increase in commitments up to a maximum facility amount of $1.75 billion. It may also terminate, in whole or in part, the unused portion of the facility commitments at any time. Terminated commitments may not be reinstated.

The revolver includes a $150 million sublimit for letters of credit.

Borrowings will bear interest at term SOFR plus a 10 basis point adjustment and a margin ranging from 80.5 bps to 120 bps. There is also a facility fee assessed on the unused portion of the revolver that ranges from 7 bps to 17.5 bps. The margin and fee are both determined by the company’s debt rating.

Fox is required to maintain an operating income leverage ratio of 4.5 to 1.0, subject to increase for four quarters in certain situations in connection with material acquisitions.

In addition to its role as administrative agent, Citibank is also a joint lead arranger and joint bookrunner with Deutsche Bank Securities Inc., Goldman Sachs Bank USA, JPMorgan Chase Bank, NA and Morgan Stanley Senior Funding, Inc.

JPMorgan and Morgan Stanley are also the co-documentation agents, with Deutsche Bank and Goldman Sachs also serving as co-syndication agents.

No funds were borrowed at closing, and Fox subsequently terminated its previous $1 billion five-year revolver, signed March 15, 2019, with Citibank as administrative agent.

The mass media company is based in New York City.

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