Sinclair’s Diamond Sports wraps exchange offer for 5 3/8% notes

By Wendy Van Sickle

Columbus, Ohio, March 16 – Sinclair Broadcast Group, Inc. announced the final settlement of the exchange offer of its indirect subsidiaries, Diamond Sports Group LLC and Diamond Sports Finance Co., for any and all outstanding 5 3/8% senior secured notes due 2026 (Cusips: 25277LAA4, U2527JAA3), according to a company news release.

The company reported that, after the early settlement, an additional $3,852,000, or 0.1%, of the existing notes were tendered for exchange.

As previously reported, as of the early deadline of 5 p.m. ET on Feb. 28, $3.036 billion aggregate principal amount, representing 99.5% of the existing notes, had been validly tendered under the exchange offer and the corresponding consents were delivered.

The secured notes supplemental indenture will be effective immediately upon execution. Settlement by the early tender time was expected to occur on March 1.

Eligible holders were entitled to receive $1,000 principal amount of 5 3/8% senior secured second-lien notes due 2026 (Cusips: 25277LAF3, U2527JAD7, 25277LAG1) in exchange for $1,000 principal amount of the existing notes.

The offer expired at 11:59 p.m. ET on March 14. Holders were eligible to receive $990 principal amount of second-lien secured notes in exchange for $1,000 principal amount of the existing notes.

As a result of the additional notes tendered for exchange after the early deadline, the company issued an additional $3,809,000 of exchange notes.

No accrued interest was paid on the existing notes in connection with the exchange offer. But the first interest payment for the exchanged notes will include interest from the most recent interest payment date on the principal amount of the exchanged notes.

As previously reported, there is $3.05 billion principal amount of the existing secured notes outstanding. The exchange notes will have the same interest rate and maturity date as the existing notes as well as same optional redemption terms.

Following the final settlement, about $10 million of the original notes remained outstanding.

The exchange notes are guaranteed by Diamond Sports Intermediate Holdings LLC, the issuers’ direct parent, and some of its wholly owned subsidiaries. The exchange notes are not guaranteed by Sinclair, Sinclair Television Group, Inc. or any of Sinclair Television Group’s subsidiaries.

The information and exchange agent for the exchange offer is Ipreo LLC (888 593-9546, 212 849-3880, ipreo-exchangeoffer@ihsmarkit.com).

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

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