Sinclair shifts funds, trims B loan spread to Libor plus 300 bps

By Sara Rosenberg

New York, March 8 - Sinclair Television Group Inc. upsized its five-year term loan A to $115 million from $100 million and downsized its 51/2-year term loan B to $225 million from $240 million, according to a market source.

In addition, the spread on the term loan B was reduced to Libor plus 300 basis points from Libor plus 325 bps. There is a 1% Libor floor, an original issue discount of 99 7/8 and 101 soft call protection for six months.

Pricing on the term loan A was left unchanged at Libor plus 225 bps.

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.

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

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