Tv & Film

Fox Corp. Secures $1 Billion Revolving Credit Agreement

Fox Corp. Secures $1 Billion Revolving Credit Agreement
Published 1 years ago on Jun 16, 2023

The agreement, which is unsecured and has a five-year term, led by Citibank and joined by Deutsche Bank, Goldman Sachs, JP Morgan, and Morgan Stanley, may potentially expand to $1.75 billion. Fox stated that the proceeds from this debt facility will be utilized for general corporate purposes. 

This announcement comes after Fox recently settled a high-profile defamation case brought against it by Dominion Voting Systems in April. The resolution of the lawsuit prompted Fox to pay a significant settlement amount of $787 million. To finance the settlement, Fox is expected to offset the costs by utilizing insurance coverage and tax deductions for business expenses. 

As of June 14, 2023, Fox has not utilized any funds from the newly established revolving credit agreement, which will remain in effect until June 14, 2028. In its most recent financial report, Fox disclosed a balance of $4.14 billion in cash and cash equivalents on its balance sheet as of March 2023. 

This revolving credit agreement serves as a testament to Fox's financial stability and its ability to access significant funding when needed. The consortium of banks involved demonstrates the confidence of these financial institutions in Fox's business operations and future prospects. 

It is worth noting that Fox settled another defamation suit in April, involving allegations related to the aftermath of the 2020 election. This case was filed by Majed Khalil, a Venezuelan businessman, who was portrayed in a segment on the Dobbs show as part of a conspiracy to rig the election in favor of Joe Biden. 

Furthermore, Fox is currently facing another defamation lawsuit filed by Smartmatic USA Corp., an electronic voting firm. The lawsuit, initiated in February 2021, addresses allegations of fraud made by Fox regarding Smartmatic's involvement in the election. 

Under the leadership of Executive Chairman and CEO Lachlan Murdoch, Fox Corp. continues to navigate legal challenges while maintaining its position as a major player in the media industry. The recent revolving credit agreement provides the company with additional financial flexibility and resources as it pursues its strategic objectives.

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