News Corp., owner of Fox television, Discovery Communications Inc. and other media companies, raised almost $4 billion in debt sales last month, a sign that thawing credit may open the door for takeovers.
The surge in issuance compares with nothing in July and zero a year earlier. It brings total bond sales by U.S. media companies to $18.3 billion in 2009, more than all of 2008, and lets companies repay maturing debt or finance growth.
The access to markets, combined with cash and pressure for growth, may fuel acquisitions, said Hale Holden, a debt analyst with Barclays Capital in New York.
Average borrowing costs for U.S. media companies have fallen to 4.96 percent as of Thursday, from a record 9.4 percent on Oct. 20, 2008, according to Merrill Lynch & Co.’s U.S. Corporates, Media index.
Bloomberg News Service
