On Monday, Spanish Broadcasting System announced that, in connection with its planned recapitalization, the company received a letter from a “recognized multinational financial services broadcast lender” stating that it is highly confident of its ability to arrange $300 million in secured debt financing.”
The company says the debt financing will carve out certain non-core real estate and broadcast station assets so that, in connection with the recapitalization, SBS will be positioned to obtain a separate and incremental first lien asset-based financing facility.
SBS intends to use the proceeds from the $300 million of debt financing plus the proceeds of the additional and incremental asset-based funding to repay its existing $249.9 million of 12.5% Senior Secured Notes and to make cash purchases of its existing Series B preferred stock.
