Univision Begins Sale Of Publishing Division
July 27, 2007 at 7:42 AM (PT)
UNIVISION kicked off the auction of its music publishing division last week, reports THE FINANCIAL TIMES. The company disclosed in a regulatory filing in FEBRUARY that it would sell the unit and its non-core radio stations. Management sent out books for the music publishing business last week and several strategic players are interested, according to three sources familiar with the situation. CREDIT SUISSE and ALLEN & CO. were hired for the sale.
UNIVISION loans could trade higher after the sale, since proceeds must be used to pay down debt, said two loan investors. According to the company’s credit agreement, management must turn over proceeds to lenders within 10 days of a sale’s completion.
The planned assets sales play a key role in management’s plans to bring leverage to safer levels. SONY/ATV, UNIVERSAL MUSIC GROUP, EMI and WARNER MUSIC GROUP are bidding for the assets, according to two of the sources. UNIVERSAL and SONY/ATV appear to be more interested than EMI and WARNER, as EMI is in the process of being acquired and WARNER is looking at other acquisitions, one of the sources said.
Bids for the music assets fall between $350 and $400 million, according to the sources.