Home > Content > Foxtel Seek $2.5 Billion Investor Debt Deal

Foxtel Seek $2.5 Billion Investor Debt Deal

Pay-TV provider, Foxtel, is reportedly seeking over $2.5 billion from potential investors, with management and bankers said to have met with local superannuation funds and institutional investment houses this week.

Reported by the Australian Financial Review, the debt offer expands three parts including an Aussie dollar term loan B deal, US dollar term loan B deal, and US dollar high yield bond raising.

Pitched investors claim the funds will replace Foxtel’s $2.5 billion debt pile, which will start to fall due this year.

Foxtel has reportedly appointed three investment banks to manage the raising, including Goldman Sachs.

The pay-TV provider is said to be seeking the funds for seven to eight years, specifically opting for covenant-light structures.

It remains unclear what return Foxtel is offering investors, with details expected to follow soon.

The news comes as Foxtel faces pressure to lift revenue, earnings and subscription numbers.

As disclosed by majority shareholder, News Corp, Foxtel has generated a year-on-year increase in subscribers, notching 2.9 million as at December 31.

Despite this, for the most recent financial quarter, revenues slipped 11% to $US562 million, with EBITDA down 46% to $US84 million.

It follows Foxtel’s launch of Australia’s first 4K TV channel (‘Channel 444’), coupled with costly broadcast rights, as its seeks to be the country’s home of premium sports coverage.

The company has also invested in sports streaming app, Kayo, which recently achieved 100,000 paid subscribers.

You may also like
LG Unveils Vibrating TV With Speakerless Audio
Buyers Circling David Jones, After Solomon Lew’s Move
Amazon Attracts Prime Members With Next Day Delivery
Foxtel Lift Subscribers To 4.4M Up 13%
Australian TV Advertising Market Worth $4.3B, Up 11%