Telemundo Communications Group, the Hialeah, Fla.- based operator of Hispanic television stations in the U.S. and Puerto Rico, has tapped Credit Suisse First Boston for a $500 million credit to finance the acquisition of a Spanish-language television station in Los Angeles for approximately $239 million. The new credit, expected to be completed by July, will also refinance an existing $350 million credit launched in November 1997, explained Vincent Sadusky, cfo and treasurer for Telemundo. CSFB was bookrunner for the previous loan, added Sadusky, declining to name the other banks considered or involved in the deal.
The company is buying KWHY-TV, Channel 22 in Los Angeles. The structure, pricing and covenants on the deal are being worked through, with syndication expected to begin next week, he noted. Sadusky said the company is hoping to load up the revolver to stay out of a big term loan burden. "Telemundo would prefer to have the revolver as [big] high as possible to minimize amortization," he noted
The existing credit is in three tranches, with a $150 million revolver, a $25 million term loan "A" and a $175 million term loan "B". Terms on the existing revolver and term "A" are LIBOR plus 187.5 basis points, with a seven-year maturity. The term "B" is priced at LIBOR plus 21/8 %. Pricing is not expected to be as beneficial to Telemundo as the last deal, Sadusky stated, but that is a reflection of the market. Officials at CSFB could not be reached for comment.