SatelliteFinance understands that satellite broadcaster DirecTV is on the verge of securing a new US$2bn revolving credit facility.
The unsecured revolver will be taken out via subsidiary DirecTV Holdings and has a tenor of five years.
MLAs are Barclays…
SatelliteFinance understands that satellite broadcaster DirecTV is on the verge of securing a new US$2bn revolving credit facility.
The unsecured revolver will be taken out via subsidiary DirecTV Holdings and has a tenor of five years.
MLAs are Barclays Capital and Citigroup with BoA Merrill Lynch, JPMorgan and UBS also thought to be participating.
DirecTV was last in the market in September 2010 with a US$3bn three tranche senior unsecured bond offering.
Proceeds from that facility, also through DirecTV Holdings, were used to repay the US$1.22bn outstanding borrowings under the Term Loan A and B portions of its senior secured credit facility. The bond was arranged by Citigroup, JPMorgan, Credit Suisse and Goldman Sachs, while BarCap, Bank of America and UBS were co-managers.
Increases stake in SKY Brasil
DirecTV has completed a US$604.8m cash-for-stock transaction to buy an 18.9% stake in DTH operator SKY Brasil from the Brazilian communications group Globo Comunicacoe e Participacoes (Globo).
The transaction means that DirecTV’s total stake in SKY Brasil is now 93%, while Globo holds the remaining 7%.
The deal resulted from a 2004 exchange agreement between Globo and the other shareholders in SKY Brasil. This agreement required DirecTV to acquire all or a portion of at least 50% of Globo’s shares in satellite broadcaster. Globo informed DirecTV that it would exercise its right to exchange its shares in June 2010.
DirecTV declined to provide SatelliteFinance with details on the advisers for the deal.
The transaction further bolsters DirecTV’s plans to expand its Latin American operations. In early 2010, it announced plans to invest US$46m in Argentina during 2011 in order to strengthen its core DTH product and to begin offering internet services.
The initial plan is to roll out its service in Mendoza, a city in western Argentina, and to establish a production facility in Tierra del Fuego in the south, which would allow it to take advantage of various tax incentives.
DirecTV also owns 41% of SKY Mexico and all of Panamericana, a TV service with 3.2 million subscribers that focuses mainly on the western side of the continent, as well as Argentina.
Revenues at DirecTV Latin America have continued to rise despite the downturn and in the third quarter the company reported a 22% year-on-year rise to US$930m, predominantly driven by a 27% increase in Q3 net subscriber additions.
