UPDATED with sale closed
Fox Corp. said it completed te sale of $1.2 billion worth of notes and will use net proceeds for general corporate purposes. Companies are raising cash at a rapid pace as a nest egg against the harsh economic impact and unknown duration of the coronvirus.
Fox announced the sale of two trranches of $600 million worth of senior notes on March 31.
Earlier Tuesday Fox said the the COVID-19 spread could have an adverse material impact on its business. It’s the latest in a stream of companies to both officially declare the risk the economic shutdown poses to their business and raise cash to see it through hard times.
Comcast, Disney and ViacomCBS have all tapped the debt market recently for, respectively, $6 billion, $4 billion, and $2.5 billion. With Fox, that’s nearly $14 billion in ten days. Discovery drew down a portion, $500 million, of a revolving credit facilty to make sure it was available. AMC Entertainment drew down all of its outstanding balance on two facilities, on here and one in the U.K.
Fox said in an SEC filing it expects the offering to close on April 7. It’s sellling two traches of senior notes for $600 million: one, of 3.050% notes due 2025, and one of 3.500% otes due 2030.
Citigroup, J.P. Morgan, Deutsche Bank, Goldman Sachs and Morgan Stanley are acting as the joint book-running managers for the offering.