With its stock at 94 cents and investors nervous, Spanish Broadcasting System has followed through on one part of a recapitalization strategy announced April 19 by the Miami-based Hispanic media company.
On June 9, SBS closed on the sale of its offices and studios housing its two FM stations in Los Angeles, taking in net proceeds of $10.34 million.
The property, at 10281 Pico Boulevard in West Los Angeles, nearly adjacent to the 21st Century FOX lot and headquarters, sold for $14.7 million, ahead of expenses tied to the deal.
The net proceeds were used to repay a portion of the outstanding indebtedness on SBS’s outstanding 12.5% Senior Secured Notes due 2017.
The station’s, regional Mexican KLAX-FM 97.9 “La Raza” and Spanish Top 40 KXOL-FM “Mega 96.3,” won’t see any immediate changes, with respect to offices and studios. Pursuant to a separate office lease agreement, SBS will continue to maintain its radio operations at the property for a period of up to 12 months after the closing.
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