Mexico's Televisa to fund tender, buyback offer with proceeds from 6 5/8% notes offering

By Caroline Salls

Pittsburgh, March 18 - Grupo Televisa SA said it will fund its previously announced tender offer for all $300 million of its 8% senior notes due 2011 using proceeds from its offering of $400 million 6 5/8% senior notes due 2025.

The proceeds will also be used to fund the offer to buy back its 3.839 million Unidades de inversion (UDI) of medium-term notes due 2007.

On Friday, the company bought back about $145 million of the 8% notes and 2.899 million UDI of the medium-term notes.

The tender offer for the senior notes due 2011 ends at 5 p.m. ET on March 21 and the offer to buy back the medium-term notes ends at 1 p.m. ET on March 23.

As announced on March 15, Televisa is offering for the 8% notes a price that will be fixed using a spread of 60 basis points over the bid-side yield to maturity of the 4% U.S. Treasury note due March 15, 2010.

Televisa will also pay accrued interest up to but excluding the date of purchase and, under some circumstances, additional amounts for Mexican withholding taxes.

Based on the reference security price at 10 a.m. ET on March 14, the purchase price would be $1,174.96.

Credit Suisse First Boston LLC (800 820-1653) and Citigroup Global Markets Inc. are the dealer managers for the tender offer for the senior notes due 2011, D.F. King & Co., Inc. (800 269-6427) is the information agent and Dexia Banque Internationale a Luxembourg (+352 4590-1) is Luxembourg tender agent.

Televisa is a Mexico City-based media company.

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