Mexico’s largest satellite-TV and cable operator Grupo Televisa is out with a new dollar-denominated senior bond offering.
The company issued US$1bn of senior unsecured 5% notes due May 2045. The notes priced at 96.534 to yield 5.227% and are rated Baa1…
Mexico’s largest satellite-TV and cable operator Grupo Televisa is out with a new dollar-denominated senior bond offering.
The company issued US$1bn of senior unsecured 5% notes due May 2045. The notes priced at 96.534 to yield 5.227% and are rated Baa1 / BBB+ / BBB+.
Credit Suisse, Deutsche Bank and HSBC are joint book-running managers on the transaction, which is expected to settle on 13 May.
Proceeds are to be used for general corporate purposes.
The financing comes just over a month after Televisa raised Ps6bn (US$457m) through a local bond offering of senior unsecured notes due April 2021.
Not including this latest issuance, Televisa has total debt of about US$5bn, approximately US$700m of which will mature in the next two years.
The company has a sizeable cash reserve with its cash balance as of 31 December 2013 totalling roughly US$1.6bn, enough to cover close to 25% of its total pro forma debt.
In a research note, ratings agency Moody’s argued that Televisa’s credit profile is evolving from a high margin content business towards a capital intensive telecom operator.
It added: “Under this new configuration, we expect a more leveraged profile offset by the company’s free cash flow gradually changing from neutral to slightly positive going forward. We also expect Televisa’s acquisitive mode to continue in order to consolidate regional or local cable companies.”
Headquartered in Mexico City, Mexico, Televisa is the largest diversified media company in the Spanish-speaking world based on its market cap. The company has a 57% share of the Mexican pay-TV market through its satellite broadcaster and three regional cable TV companies.
The company also has a stake in a local mobile operator Iusacell.
