Sinclair Refinances Its Existing Bank Credit Facility
Contact: David Amy, EVP & CFO
Lucy Rutishauser, VP & Treasurer
SINCLAIR REFINANCES ITS EXISTING BANK CREDIT FACILITY AND RAISES ADDITIONAL TERM LOAN AND REVOLVING COMMITMENTS
BALTIMORE (April 10, 2013) – Sinclair Broadcast Group, Inc. (the “Company”) (Nasdaq: SBGI) announced that its wholly-owned subsidiary, Sinclair Television Group, Inc. (“Sinclair”), has refinanced its existing bank credit facility via an amendment and restatement, raising new term loan and revolving commitments and increasing operating flexibility.
Sinclair raised $900.0 million of new term loans, which consisted of $500.0 million in new term A loans maturing April 2018 and priced at LIBOR plus 2.25% and $400.0 million in new term B loans maturing April 2020 and priced at LIBOR plus 2.25% with a LIBOR floor of 0.75%. In addition, Sinclair obtained a new $100.0 million revolving line of credit maturing April 2018 and priced at LIBOR plus 2.25%. The new term loans, cash on hand and/or a draw under the revolving line of credit, will be used to finance the existing bank credit facility and to fund the previously announced acquisitions of the Barrington Broadcasting Group and certain of the Cox Media Group television stations which are currently expected to close in the second quarter 2013, respectively. Due to timing related to the closing and funding of the acquisitions, approximately $445.0 million of the new term A loans will be drawn on a delayed basis. Sinclair also amended certain terms of the bank credit facility, including increased incremental loan capacity, increased television station acquisition capacity and increased flexibility under the negative covenants.
Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, owns and operates, programs or provides sales services to 112 television stations in 61 markets, pending transactions. Sinclair’s television group reaches approximately 30% of U.S. television households. Sinclair’s television portfolio consists of FOX, MNT, CW, ABC, CBS, NBC, and Azteca stations. The Company regularly uses its website as a key source of Company information and 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 refinancings, 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.