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Sinclair Increases Private Offering to $500 Million
10/16/2009

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 previous estimates.

More on Sinclair:
October 13, 2009: Sinclair Revises 3Q Expectations Upward
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 operational partner. 

October 8, 2009: Sinclair Commences Tender Offer
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 Gets Extension
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 Bankruptcy ‘Remote’
“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 Bankruptcy
Sinclair Broadcasting group may have to file for bankruptcy if it can’t renegotiate the terms of some of its debt.

June 19, 2009Standard & Poor’s Cuts Sinclair
“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.”
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