Tv Azteca Announces Early Amortization Of Certificados Bursátiles Up To $1,200 Million Pesos

MEXICO CITY, Feb. 9, 2021 /PRNewswire/ -- TV Azteca, S.A.B. de C.V. (BMV: AZTECACPO; Latibex: XTZA), one of the two largest producers of Spanish-language television programming in the world, today announced that as part of its strategy to maintain financial and operational viability, will early amortize up to $1,200 million pesos of the principal — $4,000 million pesos — of the Certificados Bursátiles (CEBURES) maturing 2022; date on which the company will continue to comply with the remainder of the principal and interests on a timely manner.

For more than a year, TV Azteca implemented a strict strategy of financial and operational efficiencies to ensure its long-term viability, facing with certainty a crisis in the broadcast television industry that experienced a decline of more than 40% in the advertising market in the last five years; we are also experiencing the consolidation of competitors on digital media and the increase in the cost of content production.

Moreover, this panorama has been aggravated by the deterioration of economic indicators derived from the pandemic caused by the SARS-CoV-2 virus, resulting in lower sales due to a sharp reduction in advertising investment. Within this complex environment, the company will seek to maintain its financial health by making the amortization of the CEBURES.

Also, TV Azteca contemplates to reorganize its debt in foreign currency by initiating a constructive dialogue with holders of the $400 million dollar notes due 2024. Therefore, it has announced the deferment of the payment of the coupon corresponding to February 2021, expecting to reach briefly an agreement that responds to the context and the situation of the company.

Consequently, José Luis Riera Kinkel, General Director of Corporate Finance of Grupo Salinas, has been appointed responsible for the debt reorganization process, who will be accompanied by Moelis & Company LLC and Alfaro, Dávila y Scherer, S.C. (AD&S), highly specialized global financial advisory companies with extensive experience in processes of this type.

About these announcements, Rafael Rodríguez Sánchez, CEO of TV Azteca, commented: "As part of our operational efficiencies and cost reduction strategy to be competitive in the long-term, today we started a debt reorganization process as an unequivocal sign that we are acting in an orderly and responsible manner, and we will continue to do so". Mr. 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 the 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 offering audiences the best content on broadcast television and on digital media.

About TV Azteca
TV Azteca is one of the two largest producers of Spanish-language television programming in the world, operating four television networks in Mexico:  Azteca uno, Azteca 7, adn40 and a+, through more than 300 owned and operated stations 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 Grupo Salinas company (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 standards of living; social value to improve community wellbeing; and environmental value by reducing the negative impact of its business activities. Created by Mexican entrepreneur Ricardo B. Salinas (www.ricardosalinas.com), Grupo Salinas operates as a management development and decision forum for the top leaders of member companies. Each of the Grupo Salinas companies operates independently, with its own management, board of directors and shareholders. Grupo Salinas has no equity holdings. The group of companies shares a common vision, values and strategies for achieving rapid growth, superior results and world-class performance.

Except for historical information, the matters discussed in this press release are concepts about the future that involve risks and uncertainty that may 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.

Investor Relations:

Bruno Rangel
Grupo Salinas
Tel. +52 (55) 2601-5400, ext. 11502
jrangelk@gruposalinas.com.mx  

Rolando Villarreal
TV Azteca, S.A.B. de C.V.
Tel. +52 (55) 2601-5400, ext. 11508
rvillarreal@tvazteca.com.mx 

Press Relations:

Luciano Pascoe
Tel. +52 (55) 1720 1313 ext. 36553
lpascoe@gruposalinas.com.mx

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SOURCE TV Azteca, S.A.B. de C.V.