Sinclair Broadcast Group continues to reconfigure its balance sheet. It has refinanced part of its bank credit facility and is redeeming a bond issue.
The bond redemption was pretty much a given. The 6% convertible subordinated debentures come due in September, but the $70 million outstanding will be cashed out at 100% of face value on April 15th, plus the final interest payment. The redemption of the Debentures and payment of accrued interest will be funded from the net proceeds of Sinclair Television Group’s recently financed $115.0 million Term Loan A, the company said.
As for the bank refi, Sinclair’s wholly-owned subsidiary, Sinclair Television Group, has refinanced a portion of its senior secured bank credit facility and amended certain of its terms.
Under the amendment, Sinclair paid down $45.0 million of its existing $270.0 million term loan B. Pricing on the term loan B was reduced by 100 basis points to LIBOR plus 3.00% with a LIBOR floor of 1.00%, which was reduced from 1.50%. The term loan B maturity was extended 1 year to October 29, 2016.
Sinclair also raised a new $115.0 million term loan A that matures March 15, 2016. The term loan A is priced at LIBOR plus 2.25%. A portion of the proceeds from the term loan A was used to pay down $45.0 million of the term loan B and the remaining proceeds will be used to redeem the Company’s outstanding 6% convertible bonds due September 2012 as noted above.
In addition, the company said certain terms of the Bank Credit Agreement were also amended to provide Sinclair more incremental term loan capacity and more flexibility to use its cash balances and the revolving credit facility for restricted payments and television acquisitions.