Fitch rates Univision facilities BB-/RR2

Fitch Ratings said it assigned a BB-/RR2 rating on Univision Communications Inc.'s amended and extended senior secured credit facilities.

The proposed $4,475,000,000 term loan C-5 will mature in 2024 from 2020 previously. Univision also upsized its revolving credit facility to $850 million from $550 million and extended its maturity to 2022 from 2018 previously.

Fitch also withdrew the senior unsecured CCC+/RR6 rating given the retirement of the 8½% senior unsecured notes due 2021.

The refinancing will be neutral to leverage.

Fitch said it views positively Univision’s improved liquidity profile due to the planned amendment and extension of its senior secured credit facilities, which will greatly reduce debt maturities over the next couple of years.

The agency also said it recognizes Univision’s recent efforts to modestly reduce leverage with free cash flow and its intention to apply the $376 million in proceeds from the Broadcast Spectrum Incentive Auction (BSIA), which will be received later in 2017, toward debt reduction.

Fitch believes these efforts more strongly position Univision in the B rating category.

The outlook is stable.

Roughly $8.9 billion of debt was outstanding as of Dec. 31.

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