BALTIMORE: Sinclair Television Group is commencing cash tender offers for two sets of convertible senior notes. Sinclair’s (NASDAQ: SBGI) 3 percent notes dues 2027 and its 4.875 percent notes due 2018 are up for cash tender. All noteholders can sell them back to the company for 100 percent of the principal; 3 percents in May 2010, and the 4.875 percent notes, in January 2011,
Sinclair said about $27.7 million of the 3 percent notes and $37 million of the 4.875 percent notes are currently outstanding. Those who tender the notes will receive unpaid interest from the last interest payment date, in addition to the principal. Full terms and conditions are outlined in the offer to purchase filed with the Securities and Exchange Commission today. The offer expires Tuesday, Feb. 23, 2010, midnight EST.
Sinclair said it would pay for the tender offer with cash held in a collateral account raised from a prior sale and issuance of 9.25 percent senior secured second lien notes due 2017. MacKenzie Partners Inc. of New York is acting as the information agent on the offers.
Sinclair most recently revised its outlook for the fourth quarter to be better than previously expected. SBGI said broadcast revenues for the three months ending Dec. 31, 2009, would likely be $153.8 million, down 6.5 percent from last year, rather than the 11 to 12.8 percent expected two month ago. Fourth-quarter and 2009 results will be published in February. -- Deborah D. McAdams
