Spanish Broadcasting System has entered into a forbearance agreement with its note holders while it continues negotiations to come to an solution.
The 9.750% Senior Secured Notes were due on March 1, 2026. The company says 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.”
SBS and the noteholders have agreed to a 30 day forbearance while negotiating a consensual solutions. SBS says that the “discussions are progressing constructively and the Company is working with the participating holders toward a consensual transaction. However, there can be no assurance that any such transaction will be agreed to or consummated.”
SBS offered $310 million worth of notes at 9.750% interest in February 2021 to be paid semi-annually on March 1 and September 1 with a maturation date on March 1, 2026 until redeemed or repurchased earlier.
