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Innova seeks bonds

Co. wants to cut interest expenses by repurchasing debt

Televisa-owned Innova, which operates Mexico’s only satellite TV provider under the Sky brand, said Monday it had launched a cash tender offer for $195 million of $300 million in bonds due in 2013.

Innova wants to cut its interest expenses by repurchasing the debt.

Innova is funding the tender offer, which runs through April 10, with cash from a lower-rate 2.1 billion-peso ($196 million) 10-year loan issued by Citigroup-owned Mexican bank Banamex to Grupo Televisa on Friday.

Innova is also soliciting debt holders to release it from obligations to file reports and other information with the U.S. Securities and Exchange Commission. Innova does not trade on the NYSE and filing requirements entail high-priced audits.

Over the last two years, sales at Sky have become Televisa’s second biggest revenue stream behind terrestrial TV, accounting for nearly 19% of its $3 billion in sales during 2005. Innova is a joint venture with DirecTV.

With its 2005 earnings report Televisa said it would exercise options to up its shares in Innova from 52.7% to 58.7% this year.