Contact: David Amy, EVP & CFO
Lucy Rutishauser, VP Corporate Finance & Treasurer
Sinclair to Raise Additional Term Loan and Revolving Commitments and Amend Certain Terms
BALTIMORE (September 19, 2013) Sinclair Broadcast Group, Inc. ( Sinclair or the Company ) (Nasdaq: SBGI) announced today that its wholly-owned subsidiary, Sinclair Television Group, Inc. ( STG ), intends to raise incremental term loans and revolving commitments and amend certain terms under its existing bank credit facility.
Sinclair is seeking $1.2 billion of incremental term loans, which is expected to consist of $200.0 million in incremental term A loans maturing April 2018 and $1.0 billion in incremental term B loans maturing April 2020. In addition, Sinclair will seek to obtain an additional $50.0 million of revolving line of credit capacity maturing April 2018. The term loans are expected to be used to fund the previously announced Allbritton acquisition and to support general corporate purposes, which may include the redemption of the 9.25% Second Lien Notes maturing 2017. Because the Allbritton acquisition is not expected to close until after the closing of the amended bank credit facility, approximately $1.0 billion of the term loan commitments are expected to be drawn on a delayed basis. In connection with the financing, Sinclair will also seek to amend certain terms to add operating flexibility.
On a pro forma basis assuming consummation of all previously announced acquisitions, Sinclair Broadcast Group, Inc., the largest and one of the most diversified television broadcasting companies in the U.S., will own and operate, program or provide sales services to 156 television stations in 76 markets. Sinclair’s television group will reach approximately 38.2% (24.0% for purposes of the 39% FCC ownership cap) of U.S. television households and will be affiliated with all major networks. Sinclair s television portfolio will include 37 FOX, 29 ABC, 26 CBS, 23 CW, 20 MNT, 14 NBC, 5 Univision, one Azteca and one independent station. Sinclair owns equity interests in various non-broadcast related companies. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.
The matters discussed in this press release include forward-looking statements regarding, among other things, future operating results. When used, the words outlook, intends to, believes, anticipates, expects, achieves, and similar expressions are intended to identify forward-looking statements and information. Such forward-looking information is subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those set forth in the forward-looking information as a result of various important factors, including and in addition to the assumptions set forth therein, but not limited to, STG s ability to consummate the proposed refinancing, STG s ability to obtain the necessary approvals to close on pending acquisitions, the impact of changes in national and regional economies, the volatility in the U.S. and global economies and financial credit markets which impact our ability to forecast or refinance our indebtedness as its comes due, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, the CW Television and MyNetworkTV programming, our news share strategy, our local sales initiatives, the execution of retransmission consent agreements, our ability to identify and consummate investments in attractive non-television assets and to achieve anticipated returns on those investments once consummated, and any risk factors set forth in the Company s recent reports on Form 8-K, Form 10-Q and/or Form 10-K, as filed with the Securities and Exchange Commission. There can be no assurance that the assumptions and other factors referred to will occur. The Company undertakes no obligation to update such forward-looking information in the future except as required by law.