Spanish Broadcasting has agreed to sell its Southern California stations, KZAB(FM) and
KZBA(FM), to Styles Media Group for $120 million in cash. SBS says the deal fits with its plan to shed non-core stations, de-leverage the company and "strengthen its balance sheet," according to its announcement.
"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," states SBS President/CEO Raúl Alarcón. The extra cash plus the proceeds from the sale will help the company focus on increasing its cash flow and capitalizing on the growth of the Hispanic market in this country, he added.
Pending FCC approval, the parties expect the deal to close in Q4. Taking the sale into account, SBS would then own 19 stations in the top Hispanic-populated markets.