Sinclair Television Group talks term B at Libor plus 325 bps, term A at Libor plus 225 bps

By Sara Rosenberg

New York, Feb. 22 - Sinclair Television Group Inc. launched on Tuesday its $240 million 51/2-year term loan B with price talk of Libor plus 325 basis points with a 1% Libor floor and a par offer price and its $100 million five-year term loan A with price talk of Libor plus 225 bps, according to a market source.

JPMorgan is the lead bank on the $340 million deal (Baa3/BB+).

Proceeds from the new loans, along with cash and/or revolver borrowings, will be used to repay the company's existing $270 million term loan B that matures in October 2015 and to redeem $70 million of 6% convertible debentures due 2012.

The existing B loan was obtained in August 2010 at pricing of Libor plus 400 bps with a 1.5% Libor floor. The loan was sold at an original issue discount of 99½ and includes 101 soft call protection for one year. It was used to repay an existing B loan.

As of Sept. 30, there was about $264 million outstanding under the term loan B.

The company said in a news release on Tuesday that it expects to have more incremental loan capacity, increased television station acquisition capacity and more flexibility under the restrictive covenants with the new term loans.

Sinclair is a Hunt Valley, Md.-based television broadcasting company.

© 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.