Privately held TelevisaUnivision’s U.S. based subsidiary, which includes the Uforia-branded audio division containing Univision Communications’ radio stations and the company’s stateside television operation, has priced its refinancing of $1 billion of debt.
This, the company led by CEO Wade Davis said, includes its offering of $500 million aggregate principal amount of 8.50% senior secured notes due 2031.
As part of this transaction, TelevisaUnivision has also entered into an amendment to its 2007 Credit Agreement. This change will see the company borrow a new tranche of $500 million aggregate principal amount of term loans due 2029 with an interest rate of adjusted Term Secured Overnight Financing Rate (SOFR) plus a margin of 3.5%, at an issue price of 99%.
The 2029 Term Loans are expected to close on or about June 6; the offering of the notes is expected to close on or about June 7, subject to customary closing conditions.
For fiscally challenged TelevisaUnivision, it is a new debt-for-old debt swap, giving the coming more time to repay its lenders. Proceeds from the offering of the 2031 Notes and the 2029 Term Loans, together with cash on hand, will be used to “prepay” $1 billion of the outstanding aggregate principal amount of its 2026 Term Loans, as well as to pay any costs, fees and expenses in connection therewith.
While this is indeed a prepayment, the entire plan has been engineered to give it more time to come up with the funds necessary to satisfy the entities from which TelevisaUnivision has borrowed the dollars.
— With reporting from Adam R Jacobson
