By Ronda Fears
Nashville, May 15 - Sinclair Broadcast Group Inc. sold an upsized $125 million of premium redemption convertibles at par to yield 4.875% with a 103% initial conversion premium.
Joint lead managers for the Rule 144A deal were Bear Stearns & Co. and UBS Warburg.
The offering was upsized from $100 million and priced at the aggressive end of guidance which put the yield at 4.875% to 5.375% and the initial conversion premium at 97% and 103%.
Sinclair also sold a $100 million add-on to its 8% straight bonds due 2012.
The company intends to use proceeds of the offerings, together with available cash on hand and/or bank debt, to finance the repurchase or redemption of its existing 11.625% high yield trust offering preferred securities, or Hytops, due March 15, 2009.
Terms of the deal are:
Issuer: Sinclair Broadcast Group Inc.
| Issue: | Convertible senior subordinated notes
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| Joint lead managers: | Bear Stearns and UBS Warburg
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| Senior co-manager: | JPMorgan
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| Junior co-manager: | Deutsche Bank Securities and Wachovia Securities
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| Amount | $125 million, upped from $100 million
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| Greenshoe: | $25 million, upped from $20 million
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| Maturity: | July 15, 2018
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| Coupon: | 4.875% through Jan. 15, 2011, then 2% accreting
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| Price: | Par
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| Redemption Price: | 125.65
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| Yield: | 4.875%
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| Conversion premium: | 103%
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| Conversion price: | $22.37
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| Conversion ratio: | 44.7015
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| Call: | Noncallable until Jan. 15, 2011
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| Put: | Jan. 15, 2011
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| Contingent Conversion: | 120% declining to 111%
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| Contingent Payment: | 120% after Jan. 15, 2011
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| Expected ratings: | Moody's: B3
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| S&P: B-
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| Settlement: | May 20
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