MIAMI — Publicly traded Hispanic-centric multimedia company Spanish Broadcasting System (SBS) has completed its recapitalization effort and has closed its previously announced offering of notes due 2026.
But, here’s the big news: That Delaware Chancery Court matter regarding its Series B Preferred Stock is over.
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SBS offered $310 million in aggregate principal amount of its senior secured notes due 2026, and the company led by Raúl Alarcón Jr. used the net proceeds of the offering — along with cash on hand — to repay its 12.5% senior secured notes due 2017.
SBS is also electing to repurchase and/or redeem all of its outstanding 10 3/4% Series B cumulative exchangeable redeemable preferred stock and to pay related fees and expenses.
That said, the greater takeaway is that, in connection with the closing and the completion of its recapitalization, SBS formally settled “certain litigation” relating to the Series B Preferred Stock that was pending in the Delaware Court of Chancery.
Alarcón did not comment on the settlement in prepared comments focused on the recapitalization effort.
“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,” he said. “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.”
With shares trading October 1, 2020 at 17 1/2 cents and uncertainty over an announced voluntary deregistration of its publicly traded stock, SBS formally confirmed that it was exploring refinancing opportunities.
Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor to SBS.
RBC Capital Markets acted as financial advisor to SBS.
RBC was represented by Latham & Watkins LLP.
