Contact: David Amy, EVP & CFO
Lucy Rutishauser, VP Corporate Finance & Treasurer
Sinclair Broadcast Group Completes Convertible Debt Financing
BALTIMORE (May 10, 2007) -- Sinclair Broadcast Group, Inc. (Nasdaq:
SBGI) announced today that it completed its public offering of $300.0
million aggregate principal amount of convertible senior notes due 2027.
In addition, Sinclair has granted the underwriters of the notes an option,
solely to cover over-allotments, to purchase up to an additional $45.0
million aggregate principal amount of the notes.
The notes mature in 2027 and, upon certain conditions, will be
convertible into cash and, in certain circumstances, shares of Class A
common stock of Sinclair Broadcast Group, Inc. prior to maturity at an
initial conversion price of $20.43 per share, subject to adjustment, which
is equal to an initial conversion rate of approximately 48.9476 shares of
Sinclair Class A common stock per $1,000 principal amount of notes. The
notes may not be redeemed prior to May 20, 2010 and may thereafter be
redeemed by Sinclair at par. The offering was made pursuant to an
effective shelf registration statement previously filed with the Securities
and Exchange Commission.
Sinclair intends to use the net proceeds from the offering, together
with available cash on hand and/or bank debt, to finance the redemption of
$300.0 million aggregate principal amount of Sinclair Television Group,
Inc.'s, its wholly-owned subsidiary, existing 8.0% Senior Subordinated
Notes due 2012.
The matters discussed in this press release include forward-looking
statements regarding, among other things, the Company's future expectations
(including the proposed offering and planned use of proceeds). When used
in this press release, the words "intends to," "anticipates," "expects,"
and similar expressions are intended to identify forward-looking
statements. Such statements are subject to a number of risks and
uncertainties. Actual results in the future could differ materially and
adversely from those described in the forward-looking statements as a
result of various important factors, including the impact of changes in
national and regional economies, changes in the interest rate environment,
other credit facility market conditions, and the other risk factors set
forth in the Company's most recent reports on Form 10-Q and Form 10-K, as
filed with the Securities and Exchange Commission. There can be no
assurances that the assumptions and other factors referred to in this
release will occur. The Company undertakes no obligation to update these
forward-looking statements except as required by law.
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