Sinclair Broadcast Group subsidiary Sinclair Television Group has successfully raised new incremental term B loans and amended certain terms under its existing bank credit facility.
The value is in the billions.
Sinclair raised $3.725 billion of new term B loans maturing 2024 and priced at LIBOR plus 2.50%.
The proceeds from the term B loans, which will be drawn at closing, are expected to be used to purchase the outstanding shares of Tribune Media—assuming that Sinclair gets regulatory approval of the transaction, with or without required divestments. This is expected in early 2018.
Sinclair also expects to use the funds to refinance a portion of Tribune’s existing indebtedness, pay costs and expenses expected to be incurred in connection with the acquisition, and for general corporate purposes.
Moody’s Investors Service assigned a Ba1 rating to the new $3.725 billion Term Loan B maturing 2024.
It rates the outstanding shares of Tribune Media at B1 stable.
All other ratings remain unchanged, including Sinclair’s Ba3 Corporate Family Rating (CFR), Ba3-PD Probability of Default rating, and B1 (LGD 5) rating on the Senior Unsecured notes.
The outlook remains stable.