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Fox Bondholders Are Pushing Back on Disney’s Exchange Offer

  • Disney is said to explore ways to accomodate debtholders
  • Consenters would be ‘locked up’ until acquisition closes
Twenty-First Century Fox Inc. Studios As Disney Investors Worry Beijing Could Be Fox Deal Hurdle
Photographer: Patrick T. Fallon/Bloomberg

Walt Disney Co. is looking at ways to accommodate a group of 21st Century Fox Inc. bondholders that say they are being wronged by a bond exchange deal as the two companies prepare to combine, according to a person familiar with the matter.

Disney has offered to pay holders of $18.1 billion of Fox debt a small fee in exchange for their giving up bondholder protections known as covenants, according to research service Covenant Review. Investors that agree to the new terms also won’t be able to sell their securities until Disney’s acquisition is completed, which is slated for the first half of next year.