Spanish Broadcasting System Completes $275M Notes Offering

Posted February 8, 2012

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COCONUT GROVE, Fla. -- Spanish Broadcasting System, Inc. (Nasdaq:SBSA) today announced the closing of its offering of $275 million in aggregate principal amount of 12.5% senior secured notes due 2017 at an issue price of 97% of the principal amount. The Notes were 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 (the "Securities Act"), or to certain persons outside the United States pursuant to Regulation S under the Securities Act.

The Company used the net proceeds from the offering, together with cash on hand, to refinance the previously existing first lien credit agreement that was due June 10, 2012, and to pay the transaction costs related to the offering.

"The successful completion of this offering delevered our capital structure and strengthened our financial profile," said Raul Alarcon, Jr., SBS' Chairman and CEO. "Our ability to recapitalize our balance sheet on favorable terms demonstrates the Company's enhanced financial performance, as well as the long-term outlook for our business. We are committed to strengthening our multi-media footprint with a focus on expanding our share of the rapidly-growing Hispanic population and further improving the profitability of our portfolio of major-market assets."

About Spanish Broadcasting System, Inc.

Spanish Broadcasting System, Inc. is the largest publicly traded Hispanic-controlled media and entertainment company in the United States. SBS owns and/or operates 21 radio stations located in the top U.S. Hispanic markets of New York, Los Angeles, Miami, Chicago, San Francisco and Puerto Rico, airing the Tropical, Mexican Regional, Spanish Adult Contemporary and Hurban format genres. SBS operates 3 of the top 6 Spanish-language stations in the nation including the #1 Spanish station in America, WSKQ-FM in New York City. The Company also owns and operates MegaTV, a television operation with over-the-air, cable and satellite distribution and affiliates throughout the U.S. and Puerto Rico. SBS also produces live concerts and events and operates www.LaMusica.com, a bilingual Spanish-English online site providing content related to Latin music, entertainment, news and culture. The Company's corporate Web site can be accessed at www.spanishbroadcasting.com.

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