Sinclair to launch $3.73 billion incremental term loan B on Tuesday

By Sara Rosenberg

New York, Nov. 27 – Sinclair Television Group Inc. will hold a bank meeting on Tuesday to launch a $3,725,000,000 incremental term loan B (Ba1/BB+) due 2024, according to a market source.

JPMorgan Chase Bank, RBC and Deutsche Bank Securities Inc. are the leads on the financing.

Price talk on the term loan is Libor plus 250 basis points to 275 bps with a 0% Libor floor and an original issue discount of 99.5, the source said.

The company also plans to amend certain terms under its existing bank credit facility.

Proceeds from the term loan B will be used with cash on hand to purchase the outstanding shares of Tribune Media Co., to refinance some of Tribune’s existing debt, to pay costs and expenses expected to be incurred in connection with the acquisition and for general corporate purposes.

Under the agreement, Sinclair is buying Tribune for $43.50 per share, for an aggregate purchase price of about $3.9 billion, plus the assumption of around $2.7 billion in net debt. Tribune stockholders will receive $35.00 in cash and 0.23 of a share of Sinclair class A common stock for each share of Tribune class A common stock and class B common stock they own.

Closing is expected this quarter subject to approval by Tribune’s stockholders and customary conditions, including approval by the Federal Communications Commission and antitrust clearance.

Sinclair is a Hunt Valley, Md.-based television broadcasting company. Tribune is a Chicago-based owner of television and digital properties.

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