SBG Raises Additional Term Loans; Amends and Restates Certain Term Loans
Contact: Chris Ripley, CFO
Lucy Rutishauser, SVP Corporate Finance & Treasurer
Sinclair Raises Additional Term Loans; Amends and Restates Certain Loan Terms
BALTIMORE (July 25, 2014) – 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 new incremental tranche B term loans and to amend and restate certain terms of its existing bank credit facility.
Sinclair expects to raise $400.0 million in new incremental tranche B term loans (downsized from the previously announced expected raise of $500 million after upsizing a recent senior unsecured notes offering by the same $100 million amount). The loans are expected to mature July 2021, to be priced at 99.75% of par, and bear interest at LIBOR plus 2.75% with a 0.75% LIBOR floor. In addition, Sinclair intends to convert approximately $327.7 million of drawn tranche A term loans and delayed draw tranche A term loans and undrawn commitments into revolving commitments, with no change in maturity or rate. The new incremental tranche B term loans are expected to be used to fund the Allbritton acquisition and for general corporate purposes. Sinclair also intends to amend and restate certain other terms of its bank credit facility to provide for additional flexibility, including eliminating the financial maintenance covenants of the Total Indebtedness Ratio and the Interest Coverage Ratio. The amended and restated credit agreement is expected to close on July 31, 2014.
On a pro forma basis assuming consummation of all previously announced acquisitions, net of divestitures, 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 162 television stations in 78 markets. Sinclair’s television group will reach approximately 38.9% (24.1% for purposes of the 39% FCC ownership cap) of U.S. television households and will be affiliated with all major networks. 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 financings, 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. ###