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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/