The debt was sold as a 144A or private placement under the News America Incorporated unit. One issue was $1 billion of 4.50% senior notes due in 2021 fr a 10-year maturity. The second traunch was the 30-year maturity listed as $1.5 billion of 6.15% senior notes due in 2041.
The gross proceeds of $2,486,075,000 are earmarked for general corporate purposes, which includes the refinancing of near-term debt maturities. The company noted that its total assets as of December 31, 2010 were approximately $57 billion and total annual revenues of approximately US$33 billion.
Clearly, the cash was not needed. We have not seen the formal pricing on the deal yet, but the spreads appear to be about 85 basis points over the 10-year Treasury and about 145 basis points over the 30-year Treasury. Impressive enough.
JON C. OGG
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