On March 1, Spanish Broadcasting System (SBS) reached an important deadline — one it didn’t expect to make. That’s when the Hispanic consumer-focused media company founded and led by Raúl Alarcón Jr. was to repay its 9.75% Senior Secured Notes.
It did not. The company now has a little more time to figure out what to do, with lenders saying OK to the extra time by entering into a forbearance agreement with SBS.
This means the debtholders have said they will not exercise “certain rights and remedies” arising from SBS’ failure to meet its repayment deadline for 30 days, as the debtholders and media company “continue negotiations aimed at achieving a consensual solution.”
In a brief statement released late Friday by the Miami-headquartered owner of radio stations including “Mega 97.9” in New York, SBS said it has been engaged in “constructive discussions” with holders representing a majority of the outstanding principal amount of the Notes regarding a potential transaction to address the maturity of the Notes and strengthen the company’s capital structure.
The discussions are “progressing constructively,” but SBS reminds its stakeholders that no assurance that any deal with its debtholders will be consummated.
