Sinclair tendering for bonds, selling new ones


Sinclair Broadcast Group announced tender offers for two securities coming due in 2012. Those tenders will be paid for by the sale of $250 million in new senior unsecured notes maturing in 2018.

Both tender offers are scheduled to expire on October 18th, but one carries an early tender premium if tendered by October 1st.

First off, Sinclair is offering to buy up to $60 million of its 6% convertible subordinated debentures due 2012. About $128 million of the issue is outstanding. Sinclair is offering a cash purchase price of $987.50 per $1,000 face value of those notes tendered by the October 18th deadline.

The premium is being offered for early tenders of Sinclair’s 8% senior subordinated notes due 2012. The company is offering to buy any and all of them, with some $224.7 million currently outstanding. Sinclair is offering to pay $972.50 per $1,000 face value of notes tendered by October 18th, but an additional $30, bringing the total to $1,002.50 per $1,000 face value for tenders by the early deadline of October 1st. Notes tendered by the early tender premium deadline may not be withdrawn.

The cash to fund the redemptions will come from a private placement of approximately $250 million of new senior unsecured notes which will mature 2018. Proceeds from the sale of the new notes, along with cash on hand, will be used to pay for the two tender offers, with any excess going to “general corporate purposes.”