News Corp Secures $1.5B Credit Facility in Major Refinancing Deal

News Corporation (NWSA) has completed a significant refinancing transaction, securing $1.5 billion in new credit facilities through an amended credit agreement with a syndicate of major banks led by Bank of America.

The Deal

The media conglomerate entered into an Amended and Restated Credit Agreement on March 27, 2026, establishing two key financing components: a $1 billion five-year unsecured revolving credit facility and a $500 million five-year unsecured term loan A facility. Both facilities mature on March 27, 2031, providing News Corp with substantial financial flexibility for the next five years.

The revolving facility includes a $100 million sublimit for letters of credit and allows the company to borrow, prepay, and reborrow amounts throughout the term. The term loan features a graduated amortization schedule, with no payments in the first year, 2.5% annual amortization in years two and three, and 5% annual amortization in years four and five.

Bank of America serves as administrative agent, with JPMorgan Chase and Citibank acting as syndication agents. The lending syndicate includes 14 major financial institutions, comprising both U.S. banks like Goldman Sachs, Morgan Stanley, and Deutsche Bank, as well as international lenders including four major Australian banks.

Strategic Rationale

This refinancing replaces News Corp's existing credit agreement and provides enhanced financial flexibility for general corporate purposes. The structure offers several strategic advantages for the media company.

The $250 million accordion feature allows News Corp to increase either facility by up to that amount, subject to certain conditions, providing additional capacity for future growth initiatives or acquisitions. The company also secured options to extend the maturity dates of both facilities under certain circumstances - up to two additional one-year periods for the revolving facility and at least one year for the term loan.

The interest rate structure provides flexibility with multiple pricing options, including Term SOFR formulas and alternative currency rates, allowing News Corp to optimize borrowing costs across different market conditions. The company drew $43.75 million in new term loans at closing, bringing the total term loan balance to $500 million after extending the maturity of existing term loans.

What to Watch

The credit agreement includes important financial covenants that investors should monitor. News Corp must maintain an adjusted operating income net leverage ratio of no more than 3.5 to 1.0, with certain adjustments permitted following material acquisitions. This covenant provides insight into the company's leverage targets and acquisition capacity.

The agreement contains customary restrictions on News Corp's ability to incur liens, merge with other entities, allow subsidiaries to incur debt, or dispose of substantially all assets. These provisions protect lenders while allowing the company operational flexibility within defined parameters.

The diverse banking syndicate, including both domestic and international lenders, demonstrates broad institutional confidence in News Corp's creditworthiness. The presence of four major Australian banks is particularly noteworthy given News Corp's significant media operations in Australia.

The five-year term provides News Corp with medium-term financing stability during a period of ongoing transformation in the media industry. The combination of committed revolving capacity and term loan funding positions the company to pursue strategic initiatives while maintaining financial flexibility.

This refinancing represents a vote of confidence from the banking community in News Corp's business model and financial management, securing favorable terms that support both operational needs and potential growth opportunities through 2031.