Twenty-First Century Fox 2014 Annual Report Download - page 67

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61
Ratings of the Public Debt
The table below summarizes the Company’s credit ratings as of June 30, 2014.
Rating Agency Senior Debt Outlook
Moody's ...................................................................................... Baa1 Stable
S&P ............................................................................................. BBB+ Stable
Revolving Credit Agreement
In May 2012, 21st Century Fox America, Inc. (formerly known as News America Incorporated) (“21CFA”),
entered into a credit agreement (the “Credit Agreement”), among 21CFA as Borrower, the Company as Parent
Guarantor, the lenders named therein, the initial issuing banks named therein, JPMorgan Chase Bank, N.A.
(“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%.
Commitments and Guarantees
The Company has commitments under certain firm contractual arrangements (“firm commitments”) to make
future payments. These firm commitments secure the future rights to various assets and services to be used in the
normal course of operations. The following table summarizes the Company’s material firm commitments as of
June 30, 2014.
As of June 30, 2014
Payments due by period
Total 1 year 2-3 years 4-5 years
After 5
years
(in millions)
Contracts for capital expenditure ........................ $ 131 $ 108 $ 23 $ - $ -
Operating leases and service agreements
Land and buildings ........................................ 2,210 311 517 451 931
Transponder service agreements and other ... 2,513 465 841 611 596
Other commitments
Borrowings .................................................... 18,988 799 783 3,027 14,379
Sports programming rights ............................ 52,800 6,138 12,051 9,123 25,488
Entertainment programming rights ................ 4,618 2,069 1,852 590 107
Other commitments and contractual
obligations ................................................. 5,733 1,611 2,459 688 975
Total commitments, borrowings and contractual
obligations ....................................................... $86,993 $ 11,501 $ 18,526 $ 14,490 $ 42,476