Univision Communications has priced its offering of $1.05 billion aggregate principal amount of 4.500% senior secured notes due 2029.
The offering is expected to close on or about May 21, subject to customary closing conditions.
The Notes will be general senior secured obligations of the company and will be guaranteed by all of Univision’s wholly-owned domestic subsidiaries that guarantee the obligations under the company’s existing senior secured credit facilities, existing senior secured notes and its expected new term loan facility.
The offering is part of the financing for the proposed business combination of Grupo Televisa with Univision’s businesses, announced on April 13.
Upon consummation of the offering, the net proceeds of the offering will be deposited into a Univision escrow account and Univision will deposit into this escrow account “an amount of cash that, when taken together with the net proceeds of this offering, would be sufficient to fund a special mandatory redemption of the Notes on the applicable escrow outside date.”
Should the Televisa-Univision business combination not be consummated on or before the applicable escrow outside date or prior to such date the Transaction Agreement is terminated, the company will be required to redeem all of the Notes at a redemption price equal to 100% of the issue price of the Notes, plus accrued and unpaid interest, if any, to, but excluding, the date of redemption, and, in such event, the escrowed property will be applied to fund such redemption price.