Moody's rates Univision notes Caa2

Moody's Investors Service said it assigned a Caa2 rating to Univision Communications, Inc.'s proposed $315 million add-on to its existing $500 million of 8½% senior unsecured notes due 2021.

The proceeds will be used to fund a redemption for any of the $1.29 billion 9¾% cash/10½% payment in kind senior toggle notes due March 2015 remaining outstanding following completion of its tender offer.

The tender offer is being funded from the $1.2 billion investment made in Univision by Grupo Televisa, SAB in December.

Univision's B3 corporate family rating, B3 probability of default rating, SGL-3 speculative-grade liquidity rating and stable outlook are not affected.

The offering favorably extends the company's maturity profile and reduces total interest expense, the agency said.

The ratings reflect the company's strong and leading market position in Spanish-language media within the United States and good intermediate-term growth prospects, Moody's said, tempered by its high leverage, vulnerability to cyclical advertising and high refinancing risk.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.