Univision is still working to sell off some non-core assets and pay down debt. However, CFO Andrew Hobson told analysts that the credit crunch has slowed down that process. For the most part, Univision is selling off radio stations with little or no cash flow, since Hobson said pricing didn’t justify sales of most cash-flowing stations.
“We have approximately $78 million of asset sales under asset sale agreements or letters of intent and are negotiating another $120 million of asset sales where we have received formal written offers,” Hobson said. Questioned by Wachovia bond analyst Bishop Cheen, he said none of those pending sales have financing contingencies.
Cheen noted, though, that originally the company had spoken of some $16 million in cash flow from the assets to be sold. “The two assets with the biggest group of cash flow are our clusters in San Diego and Las Vegas – and we haven’t put those on the market yet,” Hobson explained.
Univision has already sold its music division and a few radio stations. The company indicated that it would primarily look to sell radio stations in markets where it does not also own television.