News Corp has reached an agreement with German pay-TV operator Sky Deutschland and its new bank syndicate to support both a new financing structure and the issuance of EUR 438 million of new equity. The new bank financing, which will be guaranteed by News Corp, will replace Sky Deutschland’s current bank debt facilities. Additionally, News Corporation will guarantee certain rights payments associated with Sky Deutschland’s Bundesliga broadcasting license and support the raising of additional funds of EUR 438 million to support Sky Deutschland on the continuing execution of its strategy.
Chase Carey, President and Chief Operating Officer at News Corp, said this new financing structure further validates News Corp's longstanding commitment to Sky Deutschland. Under the new financing structure, Sky Deutschland’s existing bank debt facilities will be repaid in full and be replaced by a new EUR 300 million five-year bank credit facility. News Corp has agreed to provide a guarantee to Sky Deutschland’s lending banks and to act as guarantor to the German Football League (DFL) for Sky Deutschland’s new Bundesliga broadcasting licence for the 2013/14 to 2016/17 seasons in an amount of up to 50 percent of the licence fee per season.
The EUR 438 million of new equity includes a private placement today of 77.9 million new registered shares in Sky Deutschland issued to News Corp at a price of EUR 4.46 per new share for an aggregate price of EUR 347.4 million. On registration, News Corp’s stake in Sky Deutschland will increase from 49.9 percent to 54.5 percent. The remaining funds of EUR 90.6 million to reach an aggregate of EUR 438 million are expected to be raised by Sky Deutschland through a rights offering of new registered shares to be offered to Sky Deutschland shareholders.
