Sinclair Broadcast plans tender offer for 3%, 4.875% convertibles

By Angela McDaniels

Tacoma, Wash., Aug. 20 - Sinclair Broadcast Group, Inc. plans to hold a tender offer for its $294.3 million of 3% convertible senior notes and $143.5 million of 4.875% convertible senior notes using the proceeds from a private placement of notes, according to a company news release.

The company said in May that it was exploring alternative solutions for the convertibles' upcoming put options, which fall in May 2010 for the 3% convertibles and January 2011 for the 4.875% convertibles.

The company met with members of an ad hoc committee of convertibles holders on Aug. 10, and the proposed tender offer is part of the tentative agreement in principle reached at the meeting.

The committee consists of holders of about 50% of the outstanding principal amount of the convertibles.

The private placement of debt securities would be carried out by wholly owned subsidiary Sinclair Television Group.

Tender offer

Under the agreement in principle, the purchase price in the tender offer would be $935 per $1,000 principal amount of 3% convertibles and $900 per $1,000 principal amount of 4.875% convertibles.

Tendering holders would also receive accrued interest to the settlement date.

The tender offers would be conditioned on, among other things, the receipt of enough proceeds from the private placement of notes to fund the offers and at least 95% participation by holders of each series of convertibles.

Sinclair is a television broadcasting company based in Baltimore.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.