After months of waiting, general syndication for the Univision buyout launched at a bank meeting held Tuesday. The lead arrangers began pre-marketing the deal in early February to some of the larger accounts (CIN, 2/5).
The financing for the Spanish language U.S. TV broadcaster consists of a $750 million revolver, a covenant-lite $7 billion term loan "B," a $450 million delayed-draw term loan and $500 million second-lien asset sale bridge loan. Price talk is LIBOR plus 2 1/4-2 1/2% on the first lien and LIBOR plus 2 3/4-3% on the second lien. The company is also issuing $1.5 billion of notes.
According to Moody's Investors Service, which assigned a B1 corporate family rating, the ability to PIK up to 100% of the interest on the $1.5 billion of the senior unsecured notes through 2011, no required term loan amortization for three years and a committed delayed-draw term loan to support 2007 and 2008 bond maturities provides flexibility if earnings or proceeds from the sale of the music business and certain radio stations do not meet expectations.
Standard & Poor's lowered Univision's corporate credit rating to B from BB- last Thursday after reviewing the proposed financing. It assigned a B and a 2 recovery rating to the senior secured facilities. It assigned a CCC+ and 5 recovery rating to the second-lien term loan.
The deal was announced in June, but has been held up awaiting regulatory approval (6/3). Univision is being bought by Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners and Saban Capital Group. Deutsche Bank, Credit Suisse, Bank of America, Wachovia Securities, Royal Bank of Scotland and Lehman Brothers are leading the financing. Andrew Hobson, Univision cfo, was traveling and could not immediately be reached.