Sinclair Refinances Part of its Bank Credit Line

$500 million tender offer closes Thursday
Author:
Publish date:
Updated on

BALTIMORE: Sinclair refinanced part of its existing senior secured bank credit line. Sinclair (NASDAQ: SBGI) said it raised a $330 million tranche B term loan at LIBOR plus 4.5 percent and maturing Oct. 29, 2015. The money is being used to repay Sinclair’s existing $78.8 million tranche A and $216.6 million tranche A-1 term loans that matured in December, 2011 and 2012, respectively.

Sinclair also amended its existing $175 million revolving credit facility under the same agreement. Approximately $60.5 million in existing commitments will remain in place at the current rate--LIBOR plus 0.75 percent as of June--and will mature in June of 2011. Another $75.4 million was extended until Dec. 31, 2013 at LIBOR plus 4 percent with a 2 percent LIBOR floor.

The amendment was necessary for Sinclair’s $500 million convertible note tender offer, which closes Thursday unless extended or terminated.

More on Sinclair:
October 16, 2009: “Sinclair Increases Private Offering to $500 Million”
Sinclair 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.

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.”