Grupo Televisa will invest $1.2 billion in Univision Communications, reports Bloomberg News.
Televisa, the world’s largest Spanish-language broadcaster, will receive a 5% stake in Univision and debt instruments than can be converted into equity representing 30% of Univision, the story says.
Additionally, an agreement that gives Univision access to Televisa’s programming will be extended by three years, ending in 2020 instead of 2017, the article notes.
Univision was taken private after a $12.3 billion buyout in 2007 by Madison Dearborn Partners LLC, Providence Equity Partners Inc., Texas Pacific Group, Thomas H. Lee Partners LP and billionaire Haim Saban, the story notes.
The article also says that Univsion "had net assets of $10.6 billion compared with liabilities of $12.2 billion as of June 30, according to its website. Univision has a ‘highly leveraged capital structure’ including $8.6 billion in debt maturing in 2014, Standard & Poor’s said in a July report."
The story also notes that "Univision must refinance $3.25 billion of debt as part of the deal."
Furthermore, the article says that Mike Simonton, a debt analyst with Fitch Ratings in Chicago sees the deal as one showing that "The agreement shows that all major stakeholders — private- equity owners, lenders and Televisa — are ‘all aligned to see Univision survive and succeed.’ ”