S&P Global Ratings on Wednesday assigned its issue-level rating and recovery rating, respectively, to TelevisaUnivision subsidiary Univision Communications’ proposed $1 billion in term loans, with half due in 2029 and the remainder due in 2031.
A “B+” issue-level rating and “3” recovery rating were applied to the borrowing plans, comprised of a proposed $500 million senior secured notes due 2031 and $500 million senior secured term loan due 2029, respectively.
The “3” recovery rating indicates S&P Global Ratings’ expectation of meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a payment default.
TelevisaUnivision’s U.S. arm plans to use the proceeds from the proposed debt issuances to repay a portion of its senior secured term loan due in 2026 ($1.9 billion outstanding).
S&P Global Ratings’ issuer credit rating and stable outlook on Univision Communications are unchanged. Why? “The proposed transaction will not affect its net leverage,” it explained.
— Adam R Jacobson
