Univision seems to be inching towards an Initial Public Offering this year, after filing another amended prospectus with the Securities and Exchange Commission. The company pulled back from an offering in 2015 as entertainment industry stocks fell.
No date or value has been disclosed, though some analysts believe the combined television, radio, cable and digital group could be among the major media business IPOs of the decade.
RBR+TVBR cracked open the 415-page SEC filing to see how much and what type of debt Univision is trying to retire.
The company reported about total liabilities were just under $12.2B December 2014, compared to just over $12.5B as of December 2013.
Under pricing information, Univision tells the SEC that before this offering, “there has been no public market for our Class A common stock. The initial public offering price was determined by negotiations between us and the representatives.”
Price determining factors are prevailing market conditions, “the valuation multiples of publicly traded companies that the representatives believe to be comparable to us, our financial information, the history of, and the prospects for, our company and the industry in which we compete, an assessment of our management, its past and present operations, and the prospects for, and timing of, our future revenues, the present state of our development, the general condition of the securities markets at the time of this offering and the foregoing factors in relation to market values and various valuation measures of other companies engaged in activities similar to ours,” says Univision in the document.
Goldman Sachs, Morgan Stanley and Deutsche Bank are the lead underwriters for the IPO, leading a group of 18, that also includes Wells Fargo, Credit Suisse Securities, Barclays and Citigroup, according to the amended prospectus.
The funds raised would be used to repay debt and for general corporate purposes.
On Sept. 3, 2015, Univision amended the credit agreement governing its senior secured credit facilities to replace its 2013 revolving credit facility with a new one that will be increased to $850 million; the maturity date will be extended from March 1, 2018 to the five-year anniversary of the date that the borrowing capacity is increased. This last point is subject to an earlier maturity date of 91 days prior to the March 1, 2020 maturity date of the current term loans if more than $1.5 billion of the current term loans have not been refinanced to have a longer maturity date).
Univision states: “The new revolving credit facility will bear interest at a floating rate, which can either be an adjusted LIBOR rate plus an applicable margin (ranging from 200 to 250 basis points), or, at our option, an alternate base rate (defined as the highest of (x) the Deutsche Bank AG New York Branch prime rate, (y) the federal funds effective rate plus 0.50% per annum and (z) the one-month adjusted LIBOR rate plus 1%) plus an applicable margin (ranging from 100 to 150 basis points).”
The amendment was modified on Dec. 11, 2015; it’s contingent upon the offering being consummated prior to April 30, 2016, plus “the application of certain specified use of proceeds of this offering and other customary conditions.”
The credit agreement governing the broadcaster’s senior secured credit facilities also provides that it may increase the existing revolving credit facilities and/or term loans facilities by up to $750 million if certain conditions are met. After the September 2015 amendment, Univision tells the SEC “we will have in aggregate made $700 million of such increases to our existing revolving credit facilities and term loan facilities.”
