NASDAQ Suspends SBS's Delisting Process
October 30, 2008 at 9:21 AM (PT)
SPANISH BROADCASTING SYSTEM has received notification from THE NASDAQ STOCK MARKET that NASDAQ has temporarily suspended the enforcement of its minimum bid price rules because of extraordinary market conditions.
As a result of the suspension, SBS, and all other NASDAQ listed companies now in the share price compliance process, will remain at that same stage of the process. NASDAQ will not take any action to delist any security for these concerns during the suspension period, which will remain in effect through FRIDAY, JANUARY 16th, 2009 and the first relevant trade date will be TUESDAY, JANUARY 20th, 2009.
SBS received a written notification from NASDAQ on AUGUST 20th, 2008, indicating that the minimum bid price of the company's common stock had fallen below $1.00 for 30 consecutive trading days, and that it was therefore not in compliance with NASDAQ Marketplace Rule 4450(b).
SBS Pays Off Promissory Note
SBS TODAY announced that on OCTOBER 24th, 2008, the Company entered into a letter agreement with BC MEDIA FUNDING COMPANY II, LLC for the early extinguishment of the $18,500,000 non-interest bearing promissory note due JANUARY 2nd, 2009.
Pursuant to the letter agreement, the Company received a discount of $150,000 and only paid $18,350,000 in full satisfaction due under the Note. The Company used cash on hand and $15.0 million of proceeds drawn down from the revolving credit facility to satisfy the payoff amount.