Murdoch's Sky Sells 500 Million Euros of Bonds Due in 10 Years

Sky Plc, Rupert Murdoch’s European pay-TV operator, sold 500 million euros ($539 million) of bonds.

The company sold notes due in November 2025 to yield 2.296 percent, according to data compiled by Bloomberg. The next securities it is due to repay are 400 million pounds ($603 million) of bonds maturing in October 2017.

The broadcaster, which is about 39 percent owned by Murdoch’s 21st Century Fox Inc., started consolidating last year by combining its German and Italian assets under the U.K. company. Fox is focused on integrating Sky businesses into a single European platform, Chief Executive Officer James Murdoch said in an interview with the Hollywood Reporter last month.

The securities yield 130 basis points more than benchmark rates, the data show. Investors demand an average spread of 101 basis points to hold investment-grade bonds in euros, Bank of America Merrill Lynch indexes show. 

A company spokesman declined to comment on the bond sale when contacted by phone. Sky will use the proceeds for general corporate purposes, the Bloomberg data show.

The average yield investors demand to hold investment-grade bonds in euros is 1.4 percent, while that on similar pound-denominated notes is 3.6 percent, according to Bank of America Merrill Lynch indexes.

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