By Paul A. Harris
St. Louis, Mo., March 6 - Sinclair Broadcast Group Inc. priced a drive-by offering of $300 million senior subordinated notes due March 15, 2012 (B2/B) Wednesday at par to yield 8%, according to a syndicate source.
"It priced right on top of (8% area) price talk," the source said.
Wachovia Securities, Deutsche Banc Alex. Brown and J.P. Morgan were joint bookrunners.
According to Sinclair Broadcast treasurer Lucy Rutishauser, the company returned to the present high yield market to "take advantage of the interest rate environment.
"We also went to the market back in December with a deal for $310 million of senior sub notes, 10-year. That was at an 8.75% coupon," Rutishauser added.
Proceeds from Sinclair's new notes will be used to repay the Baltimore, Md.-based TV broadcasting and programming company's term loan B, Rutishauser said.
In February the company reported that it expected its revenues to be flat to up 1% in the first quarter.
| Issuer: | Sinclair Broadcast Group
|
| Amount: | $300 million
|
| Maturity: | March 15, 2012
|
| Type: | Senior subordinated notes
|
| Bookrunners: | Wachovia Securities, Deutsche Banc Alex. Brown, J.P. Morgan
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 297 basis points
|
| Call features: | Callable on March 15, 2007 at 104, 102.667, 101.333, par on March 15, 2010 and thereafter
|
| Equity clawback: | Until March 15, 2005 for 25% at 108
|
| Settlement date: | March 14, 2002 flat
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Rule 144A Cusip: | 829266AJ8
|
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