As RBR+TVBR first reported on February 18, Spanish Broadcasting System (SBS) not only completed its recapitalization effort and closed its previously announced offering of notes due 2026, but settled a court battle regarding its Series B Preferred Stock.
Further details regarding the company’s agreements with Series B shareholders are now known.
SBS entered into purchase and settlement agreements with holders of 94.16% of the company’s Series B Preferred Stock.
This saw SBS purchase from those selling Series B stock a total of 85,265 shares.
To do this, SBS paid $60 million.
This was determined by calculating the holders’ pro rata share based on 90,548 shares of Series B stock and — importantly — the holders’ pro rata share of 1,939,373 shares, or 19.99%, of SBS Class A Common Stock.
As of 2pm Eastern on March 5, “SBSAA” was trading at $2.75, at a level that hasn’t been seen in five years.
SBS reserved those 1,939,373 shares of Class A stock, and it will issue to each sellng stockholder their pro rata share.
But what about the remaining 5,283 shares of Series B Preferred Stock, representing 5.84% of those shares?
On Thursday, March 18, SBS will redeem them at a price equal to 100% of the liquidation preference, plus all accumulated and unpaid dividends per share to, but excluding, the date of redemption.
