SBS Unveils Recapitalization Strategy

0

In addition to finally releasing Q4 earnings Spanish Broadcasting Systems has also laid out what it is calling “a comprehensive recapitalization plan, and also says it is in default of its notes and a covenant.” SBS says the options it is considering include selling certain non-core assets, new financings (including debt, equity-linked securities and equity offerings), an exchange offer with the holders of its notes, with or without exit consents to amend the terms of the indenture under which the notes were issued, use of cash on hand, and a combination of these options.

SBS says it has been pursuing the sale of certain non-core assets, including certain of our television stations and real estate assets. “In connection with our recapitalization plan, we have initiated conversations with representatives of the Noteholders and holders of our 10¾% Series B Cumulative Exchangeable Redeemable Preferred Stock regarding these matters.”

The company says it cannot be sure it will be successful in its recapitalization efforts. “We did not repay the Notes at their maturity, as a result of which there was an event of default under the Indenture on April 17, 2017, which is the payment date following the Saturday, April 15, 2017 maturity date. In addition, we are in default with the security agreement covenant relating to deposit account control agreements and the related Indenture covenant regarding compliance with the security agreement, and we are in default under the Future Guarantors covenant of the Indenture (though we have delivered documentation to the Trustee to have the subsidiary become an additional guarantor of the Notes).

LEAVE A REPLY

Please enter your comment!
Please enter your name here