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Univision Draws Down $700 Million of its Bank Line

April 8 (Bloomberg) — Univision Communications Inc., the largest U.S. Spanish language broadcaster, drew $700 million from its bank credit line to repay maturing debt after selling its music division for less than planned.

The company, which has a $750 million credit line, will use $250 million to pay off bank debt maturing in 2009 and the remainder for general corporate purposes, said spokeswoman Stephanie Pillersdorf. Bond and loan prices fell as investors grew concerned that the company was increasing its debt load.

Wow! Who knew 2009 was coming up so fast? They may speak Spanish at Univision, but they’re not stupid. They’re turning their credit into cash while they still have the chance! I give the banks three months to start pulling credit lines, then another 6 months for junk bonds to show 10%+ default rates.