Sinclair Broadcast Group has for some time had an overhang of investors holding its 4.875% convertible senior notes which they had a right to “put” to the company for repurchase. The company now has clear sailing until the notes mature in 2018.
Only $5.6 million of the notes remain outstanding after Sinclair bought most of them back (over $100 million) in 2009. The put period for the convertible notes, which pay interest at 4.875%, expired on January 18th with no holders exercising their put rights to make the company buy them at par.
Sinclair noted that there are no further put rights until the notes reach maturity in 2018.