SBS Announces Extension of Credit Facility Terms

RADIO ONLINE | Wednesday, March 5, 2025

Spanish Broadcasting System (SBS)

Spanish Broadcasting System (SBS) has disclosed an amendment to its financial structure, specifically concerning its asset-based loan credit facility. According to a material change report filed on March 5, the company has extended the maturity date of its existing credit arrangement and adjusted the terms to better support its ongoing financial needs.

Initially established on February 17, 2021, with the Royal Bank of Canada serving as the administrative agent, the credit facility was originally crafted to bolster the broadcaster's working capital and other corporate expenditures. As of the recent amendment on February 12, 2025, the maturity date has been pushed to August 29, 2025, under what is now termed the "Amended Credit Facility."

In this latest financial maneuver, SBS has drawn $4.9 million from this facility, underlining its reliance on borrowed funds to maintain liquidity. The amendment introduces an increased interest rate margin of 0.75% on borrowings, which indicates a slight rise in borrowing costs for the company.

The new terms redefine the availability of credit as the difference between the lesser of the commitments and the borrowing base versus the outstanding amounts. The amended facility stipulates that advances are now capped at the sum of 90% of eligible credit card receivables, 80% of other receivables, plus up to $2 million in cash held in controlled accounts-a notable shift from previous conditions which did not limit cash inclusions for advance calculations.