It’s a common move for media companies with the ability to do so — swap debt due in a few years for a new debt facility, at different terms, for a later date. That’s exactly what privately-held TelevisaUnivision Inc. just did with respect to millions of dollars in loans associated with its U.S. operations.
Univision on Monday priced its offering of $700 million aggregate principal amount of 8% senior secured notes due 2028 at an issue price of 100.5%.
The 2028 Notes will be consolidated with the $500 million aggregate principal amount of 8% senior secured notes due 2028 that were originally issued on August 7.
The offering of the Notes is expected to close on or about December 18, and means $1.2 billion will be due in five years to the lenders.
What is TelevisaUnivision doing with the net proceeds from the offering? Together with cash on hand, it will redeem approximately $700 million of the $1.041 billion outstanding aggregate principal amount of its 5.125% senior secured notes due 2025, as well as to pay any costs, fees and expenses in connection therewith.
Thus, TelevisaUnivision has more time to repay its lenders. But, it is doing so at a significantly higher interest rate.
