Sinclair’s Diamond Sports enters $635 million first-lien, $3.22 billion second-lien facilities

By Wendy Van Sickle

Columbus, Ohio, March 2 – Sinclair Broadcast Group, Inc. subsidiaries Diamond Sports Group, LLC and Diamond Sports Finance Co. had $635 million principal amount of first-lien term loans, $3.222 billion of second-lien term loans and $4 million of third-lien term loans outstanding following a series of transactions on Wednesday, according to an 8-K filing with the Securities and Exchange.

The subsidiaries entered the $635 million of a newly funded first-priority lien term loan with Wilmington Savings Fund Society, FSB as administrative agent.

The companies entered the second-priority loans in exchange for existing loans under the Diamond Sports credit agreement. These loans have the same maturity, pricing and other terms as the existing loans but have more restrictive covenants. They were exchanged on a par basis for the existing loans.

In the case of the Diamond Sports existing revolver, a new second-priority lien revolving credit facility was entered with more restrictive covenants than the existing revolver and a term extended to May 2026 from August 2024. Otherwise, the terms of the new revolver are substantially the same as those of the existing revolver. The revolving loans were exchanged into the second-lien revolver for a principal amount equal to 35% of each participating lender’s total revolving commitments. JPMorgan Chase Bank is there revolving credit facility agent.

Diamond Sports Group reported having $227.5 million of availability under the second-lien revolver at closing of the transaction.

Loans under the Diamond Sports credit agreement that did not participate in Tuesday’s transaction rank third in lien priority.

The first-lien credit facilities bear interest at term SOFR+CSA plus 800 basis points. The second-lien term facilities bear interest at term SOFR+CSA plus 325 bps. The second-lien revolver bears interest at term SOFR+CSA plus 300 bps.

There is a commitment fee on any unused revolver borrowings.

Sinclair is a Hunt Valley, Md.-based telecommunications conglomerate.

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