Univision talks $1.5 billion eight-year notes at 9¼%-9½% with 75 bps PIK toggle feature

By Paul A. Harris

St. Louis, Feb. 28 - Univision Communications Inc. has talked its $1.5 billion offering of eight-year senior unsecured toggle notes (B3/CCC+) at 9¼% to 9½%, with a 75 basis point step-up toggle feature in the coupon should the issuer elect to make an in-kind (as opposed to cash) coupon payment.

Pricing is expected late Thursday or early Friday.

Credit Suisse, Banc of America Securities LLC, Deutsche Bank Securities, Wachovia Securities, RBS Greenwich Capital and Lehman Brothers are joint bookrunners.

Proceeds will be used to help fund the acquisition of Univision by Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group, Thomas H. Lee Partners and Saban Capital Group for $13.7 billion, including the assumption of $1.4 billion of debt, of which $950 million of existing notes will remain outstanding.

The bond financing was originally contemplated as a $2 billion two-tranche deal which, in addition to the senior notes, would have included $460 million of senior subordinated notes. That subordinated tranche was abandoned.

Univision is a Los Angeles-based Spanish-language media company.

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