Spanish Broadcasting plans to repay overdue 12½% notes, buy preferreds

By Angela McDaniels

Tacoma, Wash., Dec. 16 – Spanish Broadcasting System, Inc. plans to repay its $249.9 million of 12½% senior secured notes and to make cash purchases of its existing series B preferred stock, according to a company news release.

The 12½% notes came due on April 17, 2017.

The company plans to use the proceeds from $300 million of secured debt financing and the proceeds of a separate and incremental first-lien asset-based financing facility.

The company said it has received a letter from a “recognized multinational financial services broadcast lender” stating that it is “highly confident” of its ability to arrange the $300 million of secured debt financing.

The debt financing will carve out certain non-core real estate and broadcast station assets so that, in connection with the recapitalization, the company will be positioned to obtain the incremental first-lien asset-based financing facility, according to the news release.

Spanish Broadcasting System owns and operates radio stations and is based in Miami.

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