Moody’s rates Univision loan, revolver B2

Moody's Investors Service said it assigned a B2-LGD3 rating to Univision Communications, Inc.'s proposed $4,475,000,000 seven-year senior secured term loan due 2024.

Proceeds will be used to retire the company's existing 2020 term loan.

In addition, the agency assigned a B2-LGD3 to a new $850 million revolver due 2022, upsized by $300 million.

The transaction is credit positive, as it will extend the maturity date of the revolver and the term loan by four years and lower borrowing costs by about 25 basis points.

The corporate family rating and all other instrument level ratings are unchanged.

The stable outlook is unchanged.

“Univision's b2 corporate family rating incorporates the risk posed by its private equity ownership, which tolerates high financial leverage and shareholder distributions. In addition, Univision's credit rating is constrained by its high dependence and vulnerability to cyclical advertising demand,” Moody’s said in a news release.

“The ratings also reflect the growing exposure to competitive threats and potential loss of market share resulting from media fragmentation, as well as the risk to its retransmission fees, which regulators, competitors, and affiliates are watching closely.”

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