Grupo Televisa & Univision complete their strategic relationship in the U.S.

Univision Communications Inc. and Grupo Televisa, S.A.B. announced the completion of Televisa’s previously-announced investment in Univision and the significant expansion and extension of the Program License Agreement (the “PLA”) between the two companies.

“We have been working with Univision since the initial announcement to better explore the opportunities that can be created. We are excited about our findings and ready to start their implementation now that we have completed this transaction”

This transaction further strengthens the largest content and multi-distribution media platform for the growing U.S. Hispanic community, and enables both companies to enhance their respective business potential and value creation opportunities.

As a result of the successful refinancing of the majority of Univision’s debt, upon completion of the Televisa investment and application of the net proceeds to repay a portion of the Univision 2015 senior notes, the term of the PLA will be extended to at least 2025 or seven and one-half years after Televisa has sold most of its initial investment in Univision. The companies also noted that in addition to the U.S. PLA, which now includes Televisa programming for Univision’s traditional and digital media platforms, the two companies have also signed a program license agreement for the territory of Mexico (the “Mexico License Agreement”) under which Televisa has received the right to broadcast Univision´s content in Mexico .

In connection with the investment, three Televisa representatives joined the Univision Board of Directors, which increased to 20 members. Emilio Azcárraga Jean, Chairman of the Board and Chief Executive Officer of Grupo Televisa, Alfonso de Angoitia, Executive Vice President of Grupo Televisa, and Enrique F. Senior Hernández, Managing Director of Allen & Company LLC., were named to the Board of Univision. Additionally, José Bastón Patiño, President of Television and Contents and Member of the Executive Committee of Grupo Televisa, was named alternate member to the Board of Directors of Univision.

Emilio Azcárraga Jean said, “We are very pleased that we have moved rapidly from our initial announcement to the completion of this transaction. Our content has reached U.S. Hispanic audiences through Univision for many years. With a rapidly growing Hispanic population and increasing success of our content in the United States, this is a very appropriate moment in time to expand our content offerings and extend our agreement with Univision.”

Haim Saban, Chairman of Univision Communications, on behalf of Univision owner Broadcasting Media Partners, Inc., which includes Madison Dearborn Partners, Providence Equity Partners, TPG Capital, Thomas H. Lee Partners and Saban Capital Group said, “With the expansion and extension of the PLA, Univision can now better serve our audience. This further strengthens our unique relationship with the dynamic U.S. Hispanic community. The transaction brings together teams from both companies working in close partnership to identify initiatives aimed at further driving Univision’s success as one of the leading media companies in the U.S.”

“We have been working with Univision since the initial announcement to better explore the opportunities that can be created. We are excited about our findings and ready to start their implementation now that we have completed this transaction,” commented Alfonso de Angoitia. “We are very enthusiastic about the opportunity to create additional value to shareholders of both companies through these initiatives.”

“We are very pleased to have completed this value-creating transaction, which will significantly enhance Univision’s world-class multi-platform offerings for viewers and clients while considerably strengthening the Company’s balance sheet. The refinancing of Univision’s debt was completed on terms that exceeded our expectations, reflecting the financial community’s confidence in our business and its future. We look forward to leveraging the full potential of this strategic partnership going forward to better serve our audience and build on our strong foundation to achieve additional growth,” said Joe Uva, Chief Executive Officer of Univision Communications Inc.