Fox Corp Secures $1.0 Billion Term Loan to Fund Roku Acquisition
FOXA is trading near its 52-week low of $48.34 (7.5% above the low) on elevated volume (2.6× avg).
Summary
Fox Corp secured a $1.0 billion term loan to help finance its $22 billion acquisition of Roku, Inc., marking a key step in the deal's execution.
Key Events · Financing and Capital Events · FOXA
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Secured $1.0 Billion Term Loan
Fox Corporation entered into a definitive agreement for a $1.0 billion senior unsecured term loan facility on June 30, 2026.
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Funding Roku Acquisition
The proceeds from the term loan will be used to pay a portion of the cash consideration for the previously announced $22 billion acquisition of Roku, Inc.
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Financial Covenants
The agreement includes customary affirmative and negative covenants, requiring the company to maintain an operating income leverage ratio of not more than 4.5 to 1.0, with a temporary increase to 5.0 to 1.0 for material acquisitions.
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Contingent on Acquisition Close
The funding of the term loan is contingent upon the consummation of the Roku acquisition and other customary conditions.
Analysis · FOXA · Technology
Fox Corporation has entered into a definitive agreement for a $1.0 billion senior unsecured term loan facility. This financing is a critical step towards funding the previously announced $22 billion acquisition of Roku, Inc., providing a portion of the necessary cash consideration. The loan matures two years after the acquisition's consummation and includes financial covenants, such as maintaining an operating income leverage ratio.
At the time of this filing, FOXA was trading at $51.95 on NASDAQ in the Technology sector, with a market capitalization of approximately $20.8B. The 52-week trading range was $48.34 to $76.39. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.