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Sinclair Raises Additional Term Loans; Amends Certain Loan Terms

Date: Jul 28, 2014 @ 07:18 AM
Filed Under: Media

Sinclair Broadcast Group, Inc. said its wholly-owned subsidiary, Sinclair Television Group, Inc. ("STG"), intends to raise new incremental tranche B term loans and to amend and restate certain terms of its existing bank credit facility.

Sinclair expects to raise $400.0 million in new incremental tranche B term loans (downsized from the previously announced expected raise of $500 million after upsizing a recent senior unsecured notes offering by the same $100 million amount).  The loans are expected to mature July 2021, to be priced at 99.75% of par, and bear interest at LIBOR plus 2.75% with a 0.75% LIBOR floor.  In addition, Sinclair intends to convert approximately $327.7 million of drawn tranche A term loans and delayed draw tranche A term loans and undrawn commitments into revolving commitments, with no change in maturity or rate.  The new incremental tranche B term loans are expected to be used to fund the Allbritton acquisition and for general corporate purposes.  Sinclair also intends to amend and restate certain other terms of its bank credit facility to provide for additional flexibility, including eliminating the financial maintenance covenants of the Total Indebtedness Ratio and the Interest Coverage Ratio.  The amended and restated credit agreement is expected to close on July 31, 2014.

On a pro forma basis assuming consummation of all previously announced acquisitions, net of divestitures, Sinclair Broadcast Group, Inc., the largest and one of the most diversified television broadcasting companies in the U.S., will own and operate, program or provide sales services to 162 television stations in 78 markets.  Sinclair's television group will reach approximately 38.9% (24.1% for purposes of the 39% FCC ownership cap) of U.S. television households and will be affiliated with all major networks.  Sinclair owns equity interests in various non-broadcast related companies.

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