Azteca Holdings Redeems in Full Its US$60 Million Notes Due 2005
15 Juni 2005 - 10:38PM
PR Newswire (US)
Azteca Holdings Redeems in Full Its US$60 Million Notes Due 2005 -
Also Amortizes US$24 Million and US$2 Million Maturities of its
2008 Notes - MEXICO CITY, June 15 /PRNewswire-FirstCall/ -- Azteca
Holdings, S.A. de C.V., the controlling shareholder of TV Azteca,
S.A. de C.V., one of the two largest producers of Spanish-language
television programming in the world, announced today that it
redeemed its 12 1/2% Senior Notes due June 15, 2005, with an
outstanding balance of US$60 million. The source funds for the
redemption come from private financial institutions and investors.
The company also amortized maturities of US$24 million from its 12
1/4% Notes, and US$2 million from its 10 3/4% Notes, due 2008.
Azteca Holdings, the owner of 55% of the capital stock of TV
Azteca, received US$32 million from a US$59 million distribution to
shareholders made by TV Azteca on June 9, as part of an ongoing
cash distribution plan. Azteca Holdings used the proceeds to
amortize US$26 million in maturities, and to make corresponding
interest payments on its total debt. The US$26 million
amortization, when added to prior debt reductions made by Azteca
Holdings since July 2003 of approximately US$113 million,
represents a reduction of the company's total debt by US$139
million, or 50%, to US$140 million from US$279 million. "We are
committed to continue satisfying our obligations following the
schedule of our maturities, which entails being debt free by 2009,"
said Diego Foyo, Chief Executive Officer of Azteca Holdings. "In
the process we are substantially strengthening our capital
structure, further reducing interest expense, and at the same time
eliminating the risk of the holding company selling TV Azteca
shares to cover this debt." TV Azteca shareholders have approved
additional cash distributions for 2005 under the ongoing
disbursement plan, of approximately US$21 million to be made on
December 1. Azteca Holdings expects to use its corresponding
portion of the proceeds to make interest payments. Company Profile
Azteca Holdings, S.A. de C.V. is a holding company whose principal
asset is 55% of the capital stock of TV Azteca, S.A. de C.V. TV
Azteca is one of the two largest producers of Spanish-language
television programming in the world, operating two national
television networks in Mexico, Azteca 13 and Azteca 7, through more
than 300 owned and operated stations across the country. TV
Azteca's affiliates include Azteca America, operator of a broadcast
television network focused on the rapidly growing United States
Hispanic market; and Todito.com, operator of an Internet portal for
North American Spanish speakers. Except for historical information,
the matters discussed in this press release are forward-looking
statements and are subject to certain risks and uncertainties that
could cause actual results to differ materially from those
projected. Risks that may affect Azteca Holdings are identified in
its Form 20-F and other filings with the US Securities and Exchange
Commission. DATASOURCE: Azteca Holdings, S.A. de C.V. CONTACT:
Hector Romero, CFO of Azteca Holdings, +011-5255-3099-0060 Web
site: http://www.tvazteca.com.mx/
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