Twenty-First Century Fox 2006 Annual Report Download - page 58

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Results of Operations (CONTINUED)
Debt Instruments and Guarantees
Debt Instruments(1)
2006 2005 2004
Yearsended June 30, (in millions)
Borrowings
Notes due 2035 $1,133 $— $ —
Notes due 2034 —995 —
Notes due 2014 —748—
New Millenium II ——479
All other 26 98 69
Total borrowings $1,159 $1,841 $548
Repayments of borrowings
Liquid Yield Option™Notes $ 831 $—$—
New Millenium II —659556
Cruden Group assumed debt —654 —
Preferred Perpetual Shares — 345
MOPRSSM ——150
Eurobond ——128
All other 34 452 109
Total repayment of borrowings $865$2,110 $943
(1) See Note 9 Borrowings to the ConsolidatedFinancial Statements of News Corporation for information with respect to
borrowings.
LYONs
In February 2001, the Company issued Liquid Yield Option™Notes (“LYONs”) which pay no interest and have an aggregate
principal amount at maturity of $1,515 million representing ayield of 3.5% per annum on the issue price. The holders may
exchange the notesat any time into Class ACommon Stock or, at the option of the Company, the cash equivalent thereof
at afixed exchange rate of 24.2966 shares of Class ACommon Stock per $1,000 note. The LYONs are redeemable at the
option of the holders on February 28, 2011 and February 28, 2016 at a price of $706.82 and $840.73, respectively. The
Company, at its election, may satisfy the redemption amounts in cash, Class ACommon Stock or any combination thereof.
The Company can redeem the notesincash at any time on or after February 28, 2006 at specified redemption amounts.
On February 28, 2006, 92% of the LYONs were redeemed for cash at the specified redemption amountof$594.25 per
LYON. Accordingly, the Company paid an aggregate of approximately $831 million to the holders of the LYONs that had
exercised this redemption option.Thepro-rata portion of unamortized deferred financing costs relating to the redeemed
LYONs approximating $13 million was recognized and included in Other, net in the consolidated statement of operations
for the fiscal year ended June 30, 2006.
Ratings of the Public Debt
The table below summarizes the Company’s credit ratings as of June 30, 2006.
Rating Agency Senior Debt Outlook
Moody’s Baa 2Stable
S&P BBB Stable
Revolving Credit Agreement
On June27,2003, News America Incorporated (“NAI”), asubsidiary of the Company, entered into anew$1.75 billion Five
Year Credit Agreement (the “Credit Agreement”) with Citibank N.A., as administrative agent, JP Morgan Chase Bank, as
syndication agent, and the lenders named therein. News Corporation, FEG Holdings, Inc., Fox Entertainment Group, Inc.,
News America Marketing FSI, Inc., News Publishing Australia Limited and News Australia Holdings Pty Limited are guaran-
tors (the “Guarantors”) under the Credit Agreement.TheCredit Agreement provides a$1.75 billion revolving credit facility
with a sub-limit of $600 million available for the issuance of letters of credit, and expires on June 30, 2008. Borrowings are
in U.S. dollars only, while letters of credit are issuable in U.S. dollars or Euros. The significant terms of the Credit Agree-
58 NEWS CORPORATION