Borrowings (Tables)

9 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Schedule of Borrowings

The Company’s total borrowings consist of the following:

	Interest rate at March 31, 2020			Maturity at March 31, 2020		As of  March 31, 2020		As of June 30,  2019
						(in millions)
Foxtel Group
Credit facility 2014 — tranche 2(a)		—			Jan 31, 2020	$	—	$	56
Credit facility 2015(a)		—			Jul 31, 2020		—		281
Credit facility 2016(a)		—			Sept 11, 2021		—		193
Credit facility 2019(b) (c)		3.79	%		Nov 22, 2022		376		—
Term loan facility 2019(d)		6.25	%		Nov 22, 2024		154		—
Working capital facility 2017(a) (c) (e) (f)		3.79	%		Nov 22, 2022		18		56
Telstra Facility(g)		8.23	%		Dec 22, 2027		—		—
US private placement 2009 — tranche 3(h)		—			Sept 24, 2019		—		75
US private placement 2012 — USD portion — tranche 1(h)		—			Jul 25, 2019		—		150
US private placement 2012 — USD portion — tranche 2(i)		4.27	%		Jul 25, 2022		201		199
US private placement 2012 — USD portion — tranche 3(i)		4.42	%		Jul 25, 2024		152		149
US private placement 2012 — AUD portion		7.04	%		Jul 25, 2022		66		77
REA Group
Credit facility 2016 — tranche 3(j)		—			Dec 31, 2019		—		168
Credit facility 2018(k)		1.82	%		Apr 27, 2021		43		49
Credit facility 2019(k) (l)		1.66	%		Dec 2, 2021		105		—
Total borrowings(m)							1,115		1,453
Less: current portion(n)							—		(449	)
Long-term borrowings						$	1,115	$	1,004

(a) During November 2019, certain subsidiaries of NXE Australia Pty Limited (“Foxtel” and together with such subsidiaries, the “Foxtel Debt Group”) repaid the outstanding borrowings under these facilities using a combination of new indebtedness and an A$200 million shareholder loan provided by the Company.

(b) During November 2019, the Foxtel Debt Group entered into an A$610 million revolving credit facility maturing in November 2022 (the “2019 Credit Facility”).

(c) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus an applicable margin of between 2.00% and 3.75% per annum depending on the Foxtel Debt Group’s net leverage ratio.

(d) During November 2019, the Foxtel Debt Group entered into an A$250 million term loan facility maturing in November 2024 (the “2019 Term Loan Facility”). Borrowings under the 2019 Term Loan Facility bear interest at a fixed rate of 6.25% per annum.

(e) During November 2019, the Foxtel Debt Group amended its 2017 Working Capital Facility which, among other things, extended the remaining term to three years, decreased the capacity under the facility from A$100 million to A$40 million and increased the applicable margin.

(f) As of March 31, 2020, the Foxtel Debt Group has undrawn commitments of A$2 million under this facility for which it pays a commitment fee of 45% of the applicable margin.

(g) In February 2020, the Foxtel Debt Group entered into an A$170 million subordinated shareholder loan facility agreement (the “Telstra Facility”) that can be used to finance cable transmission costs. The Telstra Facility bears interest at a variable rate of Australian BBSY plus a margin of 7.75%.

(h) During the first quarter of fiscal 2020, the Foxtel Debt Group repaid $150 million aggregate principal amount of senior unsecured notes which matured in July 2019 and $75 million aggregate principal amount of senior unsecured notes which matured in September 2019.

(i) The carrying values of the borrowings include any fair value adjustments related to the Company’s fair value hedges. See Note 9 —Financial Instruments and Fair Value Measurements.

(j) During December 2019, REA Group repaid the final A$240 million tranche of its A$480 million revolving loan facility using a combination of cash on hand and new indebtedness.

(k) Borrowings under these facilities bear interest at a floating rate of the Australian BBSY plus a margin of between 0.85% and 1.40% depending on REA Group’s net leverage ratio.

(l) During December 2019, REA Group entered into an A$170 million unsecured syndicated revolving loan facility maturing in December 2021 (the “2019 REA Group Credit Facility”).

(m) The Company’s outstanding borrowings as of March 31, 2020 were incurred by Foxtel and REA Group, consolidated but non wholly-owned subsidiaries of News Corp. These borrowings are only guaranteed by Foxtel and REA Group and their respective subsidiaries, as applicable, and are non-recourse to News Corp.

(n) The Company classifies the current portion of long term debt as non-current liabilities on the Balance Sheets when it has the intent and ability to refinance the obligation on a long-term basis, in accordance with ASC 470-50, “Debt.”