Univision Said to Increase Loan for Rate Cut to $3.37 Billion

Univision Communications Inc., the Spanish-language broadcaster taken private by a group including Madison Dearborn Partners LLC in 2007, more than doubled the size of bank debt on which it’s seeking to lower rates, according to a person with knowledge of the deal.

The company will lower rates on $3.37 billion of loans, up from $1.5 billion, said the person, who asked not to be identified without authorization to speak publicly. The rate paid on the covenant-light term debt remains at 3 percentage points more than the London interbank offered rate, with a 1 percent minimum on the lending benchmark, the person said. Proceeds will be used to repay a portion of the company’s first-lien debt that expires in 2020.

Deutsche Bank AG, Bank of America Corp., Barclays Plc, Credits Suisse Group AG, Wells Fargo & Co., JPMorgan Chase & Co., Natixis and Mizuho Bank Ltd are arranging the financing, the person said.

Lenders are being offered six months of soft-call protection of 101 cents, meaning the company would have to pay 1 cent more than face value to reprice the debt during the first six months, according to the person.

The C-1 and C-2 loans being refinanced pay interest at 3.25 percentage points more than Libor, with a 1.25 percent floor. Univision obtained the facilities in February 2013, according to data compiled by Bloomberg.

Univision was taken private in 2007 in a $12.3 billion buyout by Madison Dearborn, Providence Equity Partners Inc., TPG Inc., Thomas H. Lee Partners LP and billionaire Haim Saban of Saban Capital Group.

Covenant-light loans don’t carry typical lender protections such as financial-maintenance requirements.

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