S&P: Spanish Broadcasting unaffected

Standard & Poor's said its ratings and outlook on Spanish Broadcasting System Inc. (B/negative/--) are unaffected following the company's announcement that it plans to increase its proposed senior secured first-lien term loan facility by $25 million to $325 million.

While this change will increase the amount of first-lien debt somewhat, S&P said the increase is not sufficient to alter the first-lien secured debt rating of B+ or the recovery rating of 1, which convey expectations for a full recovery of principal in a payment default scenario.

The incremental proceeds are expected to be used to repay a similar amount of the company's $88 million 10.75% pay-in-kind preferred stock and will modestly reduce its cost of capital, according to S&P.

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