Spanish Broadcasting System Inc., a Latino-controlled radio broadcaster, said Tuesday that it had agreed to sell two Southern California radio stations to Styles Media Group for $120 million in cash to pay down debt.
The sale of radio stations KZAB-FM and KZBA-FM is subject to approval by the Federal Communications Commission and is expected to close in the fourth quarter, Spanish Broadcasting said.
Raul Alarcon, president and chief executive of Spanish Broadcasting, said the sale of the two stations was consistent with the company's strategic plan to dispose of non-core stations and increase cash flow -- "capitalizing on the explosive growth of the U.S. Hispanic market."
Since September, Spanish Broadcasting has announced plans to sell six other stations in Chicago, San Francisco and San Antonio. The company plans to use the cash to redeem all or part of its outstanding 9.625% senior subordinated notes callable after Nov. 1.