Sinclair Broadcast Group reports Q3 results on November 4, but it gave a heads up Tuesday as it announced a private note sale and refi of a portion of its bank debt. Sinclair says Q3 revenues should be around $136 million, up from the previous guidance of $126.6 million.
“The third quarter’s better than expected results came from a variety of categories including the government’s extension of the ‘Cash for Clunkers’ program, higher political ad spending on health care and state-related issues, higher retransmission revenues, as well as increased advertising spending across many categories in August and September, a trend which appears to be continuing into the fourth quarter,” said CFO David Amy in a company statement.
With the higher guidance, Sinclair now expects Q3 revenues to be down 9.4% from a year earlier at approximately $136 million. The previous guidance of $126.6 million had been a drop of 15.7%.
Last week Sinclair had announced a reworking of its LMAs of six Cunningham Broadcasting stations and its intention to issue new notes to pay for tender offers for two issues of outstanding convertible notes. That new note issue is now formally underway.
Sinclair said its wholly owned subsidiary, Sinclair Television Group, will offer approximately $430 million in senior secured second lien notes due 2017. The proceeds will be used to fund part of the cash tenders for the convertibles, which are set to expire on November 5th.
In addition, Sinclair announced that Sinclair Television Group intends to refinance its existing bank credit facility. It intends to raise a new loan, maturing in 2015, which would refinance approximately $295.4 million in existing bank debt. Sinclair is also offering existing lenders the option of extending their commitments to 2013, rather than 2011.
RBR-TVBR observation: Still down from a year ago, of course, but this adds to the growing pile of evidence that the advertising market is finally turning. Alleluia!