SBS to undertake Recapitalization Company Plans to repay Debt and Purchase Preferred Stock

Spanish Broadcasting System, Inc. (the “Company” or “SBS”) (OTCQB: SBSAA) announced that in connection with its planned recapitalization, SBS has received a letter from a recognized multinational financial services broadcast lender stating that it is highly confident of its ability to arrange secured debt financing for SBS in an amount of $300 million. The debt financing will carve out certain non-core real estate and broadcast station assets so that, in connection with the recapitalization, SBS will be positioned to obtain a separate and incremental first lien asset-based financing facility.

SBS intends to use the proceeds from the $300 million of debt financing plus the proceeds of the additional and incremental asset-based funding to repay its existing $249.9 million of 12.5% Senior Secured Notes and to make cash purchases of its existing Series B preferred stock.

“SBS has an established track-record as a leading Hispanic owner/operator of media, having consistently reported industry-leading growth in its ratings, revenues and margins during the last several years,” stated José I. Molina, Chief Financial Officer of SBS.  “SBS expects to deliver a robust and certain return to our existing investors while repositioning SBS to continue its forward operating momentum. Following closing of the recapitalization transaction, we will continue serving our growing base of millions of Hispanics nationwide with today’s relevant news and entertainment programming, as well as the advertisers that target their dynamic purchasing power and expanding social, cultural and political influence. Likewise, we will implement our long-range strategic plans to create incremental value for our new investors.”