SBS Sells KZAB-FM & KZBA-FM In LA.

Spanish Broadcasting System, Inc. announced that it has signed a definitive agreement to sell its Southern California radio stations, KZAB-FM and KZBA-FM, to Styles Media Group for $120 million in cash. The sale is subject to FCC approval and is expected to close in the fourth quarter.

Raul Alarcon, President and CEO of SBS, commented, “This transaction is consistent with our strategic plan of disposing of certain non-core stations to deliver the Company. A combination of cash-on-hand and divestiture proceeds from recently announced station sales totaling approximately $230 million will be available to reduce outstanding debt and strengthen our balance sheet. This, combined with our Company’s superior audience delivery, will enable us to focus on increasing our cash flow and capitalizing on the explosive growth of the U.S. Hispanic market.”