Univision draws $700 million under revolver, initiates $250 million delayed-draw borrowing

By Sara Rosenberg

New York, April 8 - Univision Communications Inc. drew down $700 million under its $750 million revolving credit facility and has initiated a $250 million draw under its $450 million delayed-draw term loan, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

The revolver draw was made on Monday and the delayed-draw term loan borrowing is expected to be made on April 9.

After giving effect to outstanding letters-of-credit, the company has about $18 million remaining available under the revolver.

The company may use up to $250 million of the revolver borrowings to pay down its $500 million second-lien asset sale bridge loan that is due on March 29, 2009.

The cash proceeds of the revolver borrowing will be maintained in highly liquid short-term investments.

According to the filing, the company has no immediate needs for additional liquidity, but, in light of current financial market conditions, decided to make the revolver draw so as to get greater financial flexibility.

As for the delayed-draw term loan funds, the company plans to use that to prepay its senior notes that are due in October.

After the drawdown, there is no remaining credit available under the delayed-draw term loan, being that the company previously borrowed $200 million to redeem its senior notes that matured in 2007.

"Univision's business is performing well in the current environment, but with lenders under pressure in today's unsettled financial markets, the company believes it is prudent to access its committed bank financing for general corporate purposes. Univision's revenues for the 2008 first quarter were up year over year and the company is expecting a strong 2008-2009 upfront," a company spokesperson told Prospect News on Tuesday.

Univision is a Los Angeles-based Spanish-language media company.

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