News Corp Announces Pricing and Upsizing of Private Offering of $1 Billion Senior Notes Due 2029

Rhea-AI Summary

News Corporation has priced its private offering of $1 billion in Senior Notes due 2029, increasing the amount from a previously announced $750 million. The Notes, which will bear an interest rate of 3.875% per annum, are set to mature on May 15, 2029. The offering is expected to close on April 15, 2021, subject to standard conditions. Proceeds will be utilized for general corporate purposes such as acquisitions and working capital. The offering is conducted under an exemption from the Securities Act, and the Notes will not be registered.

Positive

• Increase in Notes offering size from $750 million to $1 billion.
• Interest rate of 3.875% per annum provides a steady return until maturity in 2029.
• Funds raised will support potential acquisitions and working capital, indicating growth opportunities.

Negative

• Offering may lead to dilution of existing shareholders if future securities offerings occur.
• Notes are not registered under the Securities Act, potentially limiting liquidity for investors.

News Corporation (“News Corp”) announced today the pricing of its private offering of $1 billion aggregate principal amount of Senior Notes due 2029 (the “Notes”). The aggregate principal amount of Notes to be issued in the offering was increased to $1 billion from the previously announced $750 million. The notes will bear interest at a rate of 3.875% per annum, payable semi-annually on May 15 and November 15 of each year, commencing November 15, 2021. The notes will mature on May 15, 2029. The sale of the Notes is expected to close on April 15, 2021, subject to customary closing conditions.

News Corp plans to use the net proceeds from the offering for general corporate purposes, which may include acquisitions and working capital.

News Corp has made the offering pursuant to an exemption under the Securities Act of 1933, as amended (the “Securities Act”). The initial purchasers of the Notes will offer the Notes only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act or to non-U.S. persons outside the United States in reliance on Regulation S under the Securities Act. The Notes have not been and will not be registered under the Securities Act of 1933 or under any state securities laws. Therefore, News Corp may not offer or sell the Notes within the United States to, or for the account or benefit of, any United States person unless the offer or sale would qualify for a registration exemption from the Securities Act and applicable state securities laws.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes described in this press release, nor shall there be any sale of the Notes in any state or jurisdiction in which such an offer, sale or solicitation would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About News Corp

News Corp (Nasdaq: NWS, NWSA; ASX: NWS, NWSLV) is a global, diversified media and information services company focused on creating and distributing authoritative and engaging content and other products and services. The company comprises businesses across a range of media, including: digital real estate services, subscription video services in Australia, news and information services and book publishing. Headquartered in New York, News Corp operates primarily in the United States, Australia, and the United Kingdom, and its content and other products and services are distributed and consumed worldwide.

Forward-Looking Statements

This release contains forward-looking statements based on current expectations or beliefs, as well as assumptions about future events, and these statements are subject to factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The words “expect,” “estimate,” “anticipate,” “predict,” “believe,” “potential” and similar expressions and variations thereof are intended to identify forward-looking statements. These statements appear in a number of places in this release and include, among other things, statements related to the offering of Notes and whether or not News Corp will consummate the offering. Readers are cautioned that any forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Many factors could cause actual results to differ materially from those described in these forward-looking statements. The forward-looking statements in this release speak only as of this date and we undertake no obligation (and expressly disclaim any obligation) to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210408005931/en/

FAQ

What is the total amount of Senior Notes being offered by News Corp?

News Corp is offering a total of $1 billion in Senior Notes.

What is the interest rate on the Senior Notes issued by News Corp?

The Senior Notes will bear an interest rate of 3.875% per annum.

When do the Senior Notes from News Corp mature?

The Senior Notes are set to mature on May 15, 2029.

What will the proceeds from News Corp's notes offering be used for?

The proceeds will be used for general corporate purposes, including acquisitions and working capital.

Is the offering of Senior Notes by News Corp registered?

No, the Notes are not registered under the Securities Act.