By Ian Walker
LONDON--British Sky Broadcasting Group PLC (SKY.LN) said
Thursday it has priced 1.75 billion pounds ($2.74 billion) of
bonds, which are being used to fund the acquisitions of Sky Italia
and Sky Deutschland that were completed earlier this month.
The soon-to-be-renamed Sky, has priced four tranches of bonds.
These are: GBP450 million senior unsecured notes, with a coupon of
2.875%, due 2020; 850 million euros ($1.07 billion) senior
unsecured notes, with a coupon of 1.875%, due 2023; GBP300 million
senior unsecured notes, with a coupon of 4.000%, due 2029; and
EUR400 million senior unsecured notes, with a coupon of 2.750%, due
2029.
At the end of July, BSkyB, the leading pay-TV operator in the
U.K., agreed to buy its sister companies in Germany and Italy from
21st Century Fox Inc. (FOXA) in a deal worth just over $9 billion,
the majority in cash, to create a pan-European, pay-TV giant with
around 20 million customers across Germany, Italy, Austria, the
U.K. and Ireland.
As part of the deal, BSkyB said it would buy 21st Century Fox's
57.4% stake in German operator Sky Deutschland for $4.72 billion in
cash, or €6.75 a share. The same offer was also made to Sky
Deutschland's remaining minority shareholders.
At the time BSkyB said it would fund the deal through a share
placing, new debt facilities and existing cash resources.
SkyB is 39%-owned by 21st Century Fox, which comprises media and
entertainment properties split off from the old News Corp. (NWSA).
The new News Corp primarily owns publishing assets, including Dow
Jones & Co., publisher of The Wall Street Journal and Dow Jones
Newswires.
-Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
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