Spanish Broadcasting System Closes On $310 Million Note Offering, Settles Suit

Refinancing

SPANISH BROADCASTING SYSTEM, INC. has closed on its offering of $310 million in 9.75% senior secured notes due 2026 (NET NEWS 2/5), completing its refinancing. SBS also settled the shareholder lawsuit pending in DELAWARE against the company involving alleged foreign ownership of Series B Preferred stock.

SBS used the net proceeds plus cash on hand to repay its 12.5% senior secured notes due 2017 and repurchase and/or redeem its outstanding 10 3/4% Series B cumulative exchangeable redeemable preferred stock, plus fees and expenses.

"SBS is pleased to have executed on this recapitalization," said Chairman/CEO RAUL ALARCON. "Looking forward, we are uniquely positioned to continue the successful expansion of our Latino entertainment platform and the industry-leading operating margins, ratings performance and aggregate audience growth of our audio, video, digital and experiential business units. Our commitment to the Hispanic market remains, as it has for nearly four decades, unwavering. We will continue serving Hispanics nationwide - as well as the advertisers that target their dynamic purchasing power and growing social, cultural and political influence."

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