Spanish Broadcasting System announced the closing of its offering of $275 million in aggregate principal amount of 12.5% senior secured notes due 2017. The new notes were priced at 97% of the principal amount.
The notes were sold in a private placement to qualified institutional investors.
SBS said the net proceeds from the offering, together with cash on hand, were used to refinance the previously existing first lien credit agreement that was due June 10, 2012 and to pay the transaction costs related to the offering.
“The successful completion of this offering de-levered our capital structure and strengthened our financial profile,” said CEO Raul Alarcon. “Our ability to recapitalize our balance sheet on favorable terms demonstrates the Company’s enhanced financial performance, as well as the long-term outlook for our business. We are committed to strengthening our multi-media footprint with a focus on expanding our share of the rapidly-growing Hispanic population and further improving the profitability of our portfolio of major-market assets.”