Spanish Broadcasting System Inc. Announces Private Placement of $275 Million of Notes to Refinance Credit Facility
January 27, 2012 at 11:23 pm EST
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Spanish Broadcasting System Inc. announced that it has commenced an offering of $275 million in aggregate principal amount of first-priority senior secured notes due 2017 ("Notes"). The proceeds from the Notes, together with cash on hand, are expected to be used to refinance all amounts outstanding under the company's existing first lien credit agreement due June 10, 2012, and to pay the transaction costs related to the offering. The Notes will be offered solely by means of a private placement either to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended ("Securities Act"), or to certain persons outside the United States pursuant to Regulation S under the Securities Act. The Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act.
Spanish Broadcasting System, Inc. owns and operates radio stations located in the United States Hispanic markets of Los Angeles, New York, Puerto Rico, Chicago, Miami, San Francisco, Orlando, and Tampa, airing the Tropical, Regional Mexican, Spanish Adult Contemporary, Top 40 and Urbano format genres. The Companyâs segments include radio and television. It operates AIRE Radio Networks, a national radio platform of over 290 affiliated stations. It also owns Mega TV, a network television operation with over-the-air, cable and satellite distribution and affiliates throughout the United States and Puerto Rico, produces a nationwide roster of live concerts and events, and owns a stable of digital properties, including LaMusica, a mobile application providing Latino-focused audio and video streaming content and HitzMaker, a performance showcase for trendsetting new artists and music aficionados. It also has various MegaTV broadcasting outlets under affiliation or programming agreements.