Brazil’s largest TV broadcaster Globo Comunicacão e Participacões (Globo) is seeking to raise US$325m through a bond offering of senior unsecured notes.
The company, which owns a minority stake in satellite broadcaster Sky Brasil, is looking to…
Brazil’s largest TV broadcaster Globo Comunicacão e Participacões (Globo) is seeking to raise US$325m through a bond offering of senior unsecured notes.
The company, which owns a minority stake in satellite broadcaster Sky Brasil, is looking to replace its US$325m 6.25% perpetual bonds with new ones maturing in 2025.
In order to do so, Globo plans to transfer the perpetual notes to its Cayman Islands-based special purpose vehicle Pontis III Ltd on 20 July. Pontis will then issue senior secured exchangeable notes (SEN) to be mandatorily exchanged for the new Globo 10-year notes. The gross proceeds of the SENs will be deposited in an escrow account that is pledged to the holders of the perpetuals and will be released on the call exercise date of the notes.
The refinancing is part of Globo’s liability management with the objective of reducing the cost of its debt. The group typically taps the US capital markets to raise new funding with its next debt not maturing until 2022 when US$200m of 5.307% senior unsecured notes and US$300m of 4.875% senior unsecured notes are due.
Globo retains a small 7% stake in the fast growing DTH provider Sky Brasil with DirecTV owning the the remainder. Globo also operates Globosat, the largest pay-TV content producer and provider in the county.