Univision Files IPO Plans With SEC
July 2, 2015 at 10:34 AM (PT)
UNIVISION HOLDINGS, INC. has filed its Form S-1 with the Securities and Exchange Commission for its initial public offering. The company will offer a yet-to-be-determined number of Class A common shares in the IPO, with MORGAN STANLEY, GOLDMAN SACHS, and DEUTSCHE BANK as lead book-running managers.
The company also announced a term extension of its TV programming deal with MEXICO's TELEVISA, bringing the arrangement through at least 2030 with a slightly adjusted royalty rate that balloons from under 12% to over 16% against UNIVISION Spanish-language media networks revenue on JANUARY 1, 2018; TELEVISA's equity in UNIVISION will also be adjusted, resulting in TELEVISA holding 22% of UNIVISION common stock voting rights, plus the right to designate a minimum number of directors to the company's board.
Consultant ADAM JACOBSON notes that a source close to the deal calls reports of the IPO being set at $100 million in shares “is a placeholder number that all IPOs use” because UNIVISION cannot set a number itself at this stage of the process. JACOBSON projects action by the SEC close to AUGUST 1st with an initial round of comments, followed by UNIVISION's reply and, if the SEC approves, a "road show" to sell institutional investors on the IPO, which would, if all follows suit, end up putting the IPO itself in fourth quarter.