Monitor for the Roku acquisition closing and any subsequent draw on the term loan. Post-closing, watch Fox's leverage ratio (covenant at 4.5x) and any credit rating actions. The facility is a committed bridge — the key catalyst remains the deal's completion and integration.
Price Chart
Executive Summary
Fox Corp entered into a $1.0 billion senior unsecured term loan credit agreement to partially fund its pending acquisition of Roku, Inc. The facility matures two years after closing, carries interest based on SOFR plus a rating-dependent margin, and includes a leverage covenant of 4.5x (stepping to 5.0x for four quarters post-material acquisitions). This financing is a routine step to secure committed acquisition funding and does not change Fox's standalone credit profile until the deal closes.
Key Financial Metrics
Key Facts
- Fox Corp entered into a $1.0 billion senior unsecured term loan credit agreement on June 30, 2026.
- The facility is contingent upon consummation of the Roku acquisition and other customary conditions.
- Proceeds will be used to pay a portion of the cash consideration for the Roku acquisition.
- The term loan matures two years after the closing date of the acquisition.
- Fox can incur up to $1.0 billion of additional term loans under the facility, subject to conditions.
- Interest is based on SOFR plus a margin ranging from 0.875% to 1.375% depending on Fox's credit rating.
- The credit agreement includes a financial covenant requiring an operating income leverage ratio of 4.5x (stepping to 5.0x for four quarters post-material acquisitions).
- The lenders include Morgan Stanley, Citibank, Deutsche Bank, Goldman Sachs, and JPMorgan Chase.
Financial Impact
Fox Corp secured $1.0 billion in committed debt financing to fund the Roku acquisition. The facility is unsecured and carries interest at SOFR + 0.875%-1.375% based on credit rating.
Risk Factors
- Acquisition may not close if conditions precedent are not satisfied or waived.
- Post-acquisition leverage could increase, potentially straining the 4.5x covenant if Roku's earnings are weaker than expected.
- Interest rate exposure on floating-rate debt if SOFR rises materially.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-290605 |
| Document: d44317d8k.htm | 0001193125-26-290605 |
| Document: 0001193125-26-290605-index-headers.html | 0001193125-26-290605 |
| Document: 0001193125-26-290605-index.html | 0001193125-26-290605 |
| Document: 0001193125-26-290605.txt | 0001193125-26-290605 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 4w ago | EFFECT | $67.55 $62.65 | ▼ −7.25% | ▼ −6.92% | $62.28 (−7.80%) |
Aug 10, 2026 7w ago | S-3ASR | $63.42 $65.23 | ▲ +2.85% | ▲ +3.77% | $62.28 (−1.80%) |
Aug 10, 2026 7w ago | 425 | $63.42 $65.23 | ▲ +2.85% | ▲ +3.77% | $62.28 (−1.80%) |
Aug 6, 2026 8w ago | 8-K | $61.79 $67.71 | ▲ +9.58% | ▲ +8.98% | $62.28 (+0.79%) |
Jun 30, 2026 13w ago | 425 | $54.13 $58.95 | ▲ +8.90% | ▲ +11.09% | $62.28 (+15.06%) |
Jun 30, 2026 13w ago | 8-K | $54.13 $58.95 | ▲ +8.90% | ▲ +11.09% | $62.28 (+15.06%) |
Jun 15, 2026 15w ago | 425 | $52.34 $54.87 | ▲ +4.83% | ▲ +4.63% | $62.28 (+18.99%) |
Jun 15, 2026 15w ago | 8-K | $52.34 $54.87 | ▲ +4.83% | ▲ +4.63% | $62.28 (+18.99%) |
Jun 15, 2026 15w ago | 425 | $54.76 $55.90 | ▲ +2.08% | ▲ +2.83% | $62.28 (+13.73%) |
Jun 15, 2026 15w ago | 8-K | $54.76 $55.90 | ▲ +2.08% | ▲ +2.83% | $62.28 (+13.73%) |
US Market Status
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