CITY OF MEXICO, February 9, 2021 / PRNewswire / – TV Azteca, SAB de CV (BMV: AZTECACPO; Latibex: XTZA), one of the two largest producers of Spanish-language television programs in the world, today announced that, as part of its strategy to maintain viability, will amortize in advance until $ 1,200 million principal’s pesos – $ 4,000 million pesos – from BursÃ¡tiles Certificates (CEBURES) due 2022; date on which the company will continue to comply with the rest of the principal and interest in a timely manner.
For more than a year, TV Azteca has implemented a strict strategy of financial and operational efficiency to ensure its long-term viability, facing with certainty a crisis in the audiovisual television industry which has seen a decline in more than 40% of the advertising market in the past five years; we are also experiencing the consolidation of competitors on digital media and the increase in the production cost of content.
In addition, this panorama was worsened by the deterioration of economic indicators derived from the pandemic caused by the SARS-CoV-2 virus, leading to a drop in sales due to a sharp reduction in advertising investments. In this complex environment, the company will seek to maintain its financial health by amortizing the CEBURES.
Also, TV Azteca plans to reorganize its foreign currency debt by initiating a constructive dialogue with the holders of the $ 400 million maturity 2024. It therefore announced the postponement of the payment of the coupon corresponding to February 2021, hoping to briefly reach an agreement that responds to the context and the situation of the company.
Therefore, JosÃ© Luis Riera Kinkel, Managing Director of Corporate Finance of Grupo Salinas, has been appointed responsible for the debt reorganization process, which will be accompanied by Moelis & Company LLC and Alfaro, DÃ¡vila y Scherer, SC (AD&S), financial advisory firms highly specialized companies with extensive experience in such processes.
Commenting on these announcements, Rafael RodrÃguez SÃ¡nchez, CEO of TV Azteca, said: “As part of our operational efficiency and cost reduction strategy to be competitive in the long term, today we launched a debt reorganization process, a clear sign that we are acting in an orderly and responsible manner, and we will continue to do so.“. Sir. Rodriguez added that he is optimistic and confident that favorable agreements will be reached in this process for all parties and for the future of Mexican television.
TV Azteca reaffirms its commitment to continue on the path of achieving financial and operational efficiencies that allow it to ensure its long-term viability to continue to offer the public the best content on television and on digital media.
About TV Azteca
TV Azteca is one of the two largest producers of Spanish-language television programs in the world, operating four television networks in Mexico: Azteca uno, Azteca 7, adn40 and a +, through more than 300 stations owned and operated across the country. The company also owns TV Azteca Digital, operator of several of the most visited digital platforms and social networks in Mexico.
TV Azteca is a company of Grupo Salinas (www.gruposalinas.com), a group of dynamic, fast-growing and technologically advanced companies focused on creating: economic value through market innovation and goods and services that improve the standard of living; social value to improve the well-being of the community; and environmental by reducing the negative impact of its business activities. Created by a Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas functions as a management development and decision-making forum for key executives of member companies. Each of the companies of Grupo Salinas operates independently, with its own management, board of directors and shareholders. Grupo Salinas does not own any participation. The group of companies shares a common vision, values ââand strategies to achieve rapid growth, superior results and world-class performance.
With the exception of historical information, the matters discussed in this press release are concepts relating to the future which involve risks and uncertainties which could cause actual results to differ materially from those projected. Other risks that may affect TV Azteca and its subsidiaries are presented in documents sent to the securities authorities.
Phone. +52 (55) 2601-5400, ext. 11502
TV Azteca, SAB de CV
Phone. +52 (55) 2601-5400, ext. 11508
Phone. +52 (55) 1720 1313 ext. 36553
SOURCE TV Azteca, SAB de CV