Sinclair sells expanded bond offering


Wall Street proved very receptive to the debt securities offering that Sinclair Broadcast Group announced last Tuesday. The offering of $430 million in senior secured second lien notes due 2017 by its Sinclair Television Group was bumped up to $500 million as the offering was priced Friday.

The notes were priced at 97.264% of their par value and will bear interest at a rate of 9.25% per annum payable semi-annually on May 1 and November 1, commencing on May 1, 2010.

Sinclair said it intends to use the net proceeds from the offering to fund the tender offers for Sinclair’s 3% Senior Convertible Notes and 4.875% Senior Convertible Notes, to pay amounts under STG’s senior secured bank credit facility and to pay fees and expenses related to the bank credit facility and the reworking of its LMAs with Cunningham Broadcasting, which was announced earlier this month.

The tender offers for the convertible notes are set to expire on Thursday, November 5th.