Sinclair Increases Private Offering to $500 Million
HUNT VALLEY, MD.:
Sinclair Broadcast Group’s TV division has priced its new senior note offering.
The offering was upsized to $500 million from $430 million. The notes were
priced at 97.264 percent of par value and will bear interest at a rate of 9.25
percent per annum, payable semi-annually on May 1 and November 1, commencing on
May 1, 2010.
Sinclair (NASDAQ: SBGI) intends to use the net proceeds to fund tender offers for
its 3 percent and 4.875 percent senior convertible notes, to pay down its senior
secured bank credit facility, and to pay down $33.5 million for its operations
partner, Cunningham Broadcasting.
The tender offers for convertible notes expire at midnight, EST Thursday, Nov. 5,
2009 unless extended or terminated.
Earlier this week, Sinclair revised its forecast for the third quarter up from
More on Sinclair:
October 13, 2009: “Sinclair Revises 3Q
The broadcaster said it expects net broadcast revenues for the three months
ended Sept. 30, 2009 to come in at $136 million, down 9.4 percent from last
year. In early August, Sinclair was shooting for $126.6 million, down 15.7
percent from 3Q08.
October 12, 2009: “Moody’s Reviews
Sinclair for Upgrade”
Moody’s Investor Service placed Sinclair on review for a potential upgrade
after the broadcaster commenced a debt refinance and a new agreement with an
October 8, 2009: “Sinclair Commences
Sinclair also announced that it has entered into a MoU with Cunningham
Broadcasting Corp., contingent upon the refinancing of the notes.
August 5, 2009: “Sinclair Reports Time
Sales Dip in 2Q”
Sinclair Broadcast Group said today that time sales fell $1 million between the
first and second quarters, a reversal of the typical trend.
August 3, 2009: “Sinclair’s LMA Partner
Cunningham Broadcasting, a management partner of Sinclair Broadcast Group,
received an extension on its $33.5 million loan due July 31.
July 15, 2009: “Analyst Deems Sinclair
“To be blunt, we think management is posturing. We believe that management is
painting the most dire scenario in a public forum as part of its negotiations
with convert holders.”
July 14, 2009: “Sinclair Positions for
Sinclair Broadcasting group may have to file for bankruptcy if it can’t
renegotiate the terms of some of its debt.
June 19, 2009 “Standard & Poor’s
“We believe that sluggish TV advertising in a nonelection, recession year will
cause Sinclair’s EBITDA to decline further and leverage to continue to rise.”