TV Azteca to redeem $300 million of 10½% notes

Pittsburgh, Sept. 22 - TV Azteca SA de CV will redeem $300 million of its 10½% notes due Feb. 15, 2007, according to a company news release.

The redemption will take place during the fourth quarter. The notes are callable at 101.75 up to Feb. 15, 2005, the release said.

The prepayment will be funded through the execution of a committed peso-dominated secured credit line from Banco Inbursa SA for $300 million.

The new credit facility includes the amortization of the current peso equivalent of $80 million in 2006, $100 million in 2007 and $120 million in 2008. TV Azteca said the gradual maturity further enhances its debt reduction efforts, which progressively lower financial cost and thus improve free cash generation.

The peso-denominated loan will eliminate the foreign exchange risk of the $300 million debt, allowing for greater predictability of the company's bottom line results going forward.

TV Azteca is a Mexico City-based producer of Spanish-language television programming.

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