Tycoon Salinas not letting SEC run-in cost him

New Mexico

AS Mexican billionaire Ricardo Salinas expands his TV empire, he's making sure his past battles with US regulators don't cost him.

Red Dorsal Finance, a subsidiary of a consortium primarily owned by Mr Salinas' TV Azteca SAB, is selling US$275 million of 16-year bonds to finance an optical-fibre network in Peru. Because the notes are guaranteed by the Andean nation, the debt is rated BBB - an investment grade that's four levels higher than Mexico City-based TV Azteca's junk ranking.

The deal is a boon to Mr Salinas and TV Azteca bondholders since it allows the broadcaster to obtain cheaper financing to fund growth and open up another source of cash flow, Fitch Ratings said. For investors wary of Mr Salinas, who in 2006 settled charges by the Securities and Exchange Commission (SEC) accusing him of reaping improper profits from loan deals, the Peru imprimatur will put them at ease, said SW Asset Management's Ray Zuc…