Fox Issues $8 Billion in Bonds to Refinance Roku Deal

Fox Corporation is issuing approximately $8 billion in investment-grade bonds to refinance debt incurred during its $22 billion acquisition of Roku, which closed on Friday. The bond offering, led by Morgan Stanley, is split into up to seven tranches with maturities ranging from three to 40 years.

Fox will use the proceeds to retire an $8.4 billion bridge facility used to fund the cash portion of the transaction. Under the terms of the deal announced in June, Roku stockholders received $95.30 in cash and 0.9799 shares of Fox Class A common stock per share.

The company expects the acquisition to generate $400 million in run-rate cost synergies within two years. Fox also anticipates an increase in free cash flow per share by the second full year after closing.