Univision picks PIK option for $1.5 billion toggle notes

By Angela McDaniels

Tacoma, Wash., March 12 - Univision Communications Inc. will pay interest on its $1.5 billion 9¾%/10½% senior toggle notes due 2015 entirely in kind for the interest period that begins Sunday and ends Sept. 14, according to an 8-K filing with the Securities and Exchange Commission.

The company said it elected to pay the $79 million interest payment in kind to enhance liquidity in light of the current uncertainty in the financial markets.

The company can pay interest on the notes in cash, in kind or half in cash and half in kind.

The PIK election will apply for future interest periods unless Univision elects otherwise.

Univision is a Spanish-language media company based in New York.

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