Univision to refinance some debt as part of investment by Televisa

By Sara Rosenberg

New York, Oct. 5 - Univision Communications Inc. will refinance a portion of its outstanding debt in connection with an investment agreement with Grupo Televisa SAB, according to a news release.

Under the agreement, Televisa will invest $1.2 billion in Univision and contribute its 50% interest in TuTV for a 5% equity stake and debentures convertible into an additional 30% equity stake of Univision. Televisa also has the option to acquire an additional 5% equity stake in Univision.

In addition, the two companies revised their Program License Agreement so that Univision will now have exclusive U.S. Spanish-language digital rights to Televisa audiovisual programming.

The Program License Agreement will also be extended to 2020 from 2017, and upon satisfaction of certain conditions, to at least 2025.

Closing on the transaction is expected to take place in the first half of 2011, subject to the refinancing and antitrust clearance under the Hart-Scott-Rodino Act.

Los Angeles-based Univision and Mexico-based Televisa are Spanish-language media companies.

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