Twenty-First Century Fox 2014 Annual Report Download - page 147

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TWENTY-FIRST CENTURY FOX, INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
141
NOTE 24. SUPPLEMENTAL GUARANTOR INFORMATION
In May 2012, 21CFA entered into the Credit Agreement, among 21CFA as Borrower, the Company as Parent
Guarantor, the lenders named therein, the initial issuing banks named therein, JPMorgan Chase and Citibank, N.A.
as Co-Administrative Agents, JPMorgan Chase as Designated Agent and Bank of America, N.A. as Syndication
Agent. The Credit Agreement provides a $2 billion unsecured revolving credit facility with a sub-limit of $400
million (or its equivalent in Euros) available for the issuance of letters of credit and a maturity date of May 2017.
Under the Credit Agreement, the Company may request an increase in the amount of the credit facility up to a
maximum amount of $2.5 billion and the Company may request that the maturity date be extended for up to two
additional one-year periods. Borrowings are issuable in U.S. Dollars only, while letters of credit are issuable in U.S.
Dollars or Euros. The material terms of the agreement include the requirement that the Company maintain specific
leverage ratios and limitations on secured indebtedness. Fees under the Credit Agreement will be based on the
Company’s long-term senior unsecured non-credit enhanced debt ratings. Given the current debt ratings, 21CFA
pays a facility fee of 0.125% and an initial drawn cost of LIBOR plus 1.125%.
The Parent Guarantor presently guarantees the senior public indebtedness of 21CFA and the guarantee is full
and unconditional. The supplemental condensed consolidating financial information of the Parent Guarantor should
be read in conjunction with these Consolidated Financial Statements.
In accordance with rules and regulations of the SEC, the Company uses the equity method to account for the
results of all of the non-guarantor subsidiaries, representing substantially all of the Company’s consolidated results
of operations, excluding certain intercompany eliminations.
The following condensed consolidating financial statements present the results of operations, financial
position and cash flows of 21CFA, the Company and the subsidiaries of the Company and the eliminations and
reclassifications necessary to arrive at the information for the Company on a consolidated basis.