Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

On October 3, 2008, Spanish Broadcasting System, Inc. (the "Corporation") requested to draw down $25.0 million from our $25.0 million revolver facility under the first lien credit agreement, dated as of June 10, 2005, among the Corporation, Merrill Lynch, Pierce Fenner & Smith, Incorporated, as syndication agent, Wachovia Bank, National Association, as documentation agent, Lehman Commercial Paper Inc., as administrative agent, and various lenders from time to time. On October 8, 2008, we only received an aggregate of $15.0 million of the $25.0 million revolver as a result of Lehman Commercial Paper Inc.'s failing to fund its $10.0 million portion of the facility due to its bankruptcy filing. The draw down on the revolver will be used, with other funds, to repay the non-interest bearing secured promissory note in the principal amount of $18.5 million, due on January 6, 2009. The $15.0 million drawn on October 8, 2008 currently bears interest at a rate equal to 1.0% over the base prime rate unless converted to a LIBOR-based term rate. As of October 8, 2008, the applicable margin of the revolving credit facility was (i) 2.00% per annum for Eurodollar loans and (ii) 1.00% per annum for base rate loans.
The Credit Agreement was filed with the Corporation's Form 8-K filed on June 16, 2005 as Exhibit 10.1.

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