Sinclair firms $3.73 billion incremental term B at Libor plus 250 bps

By Sara Rosenberg

New York, Dec. 11 – Sinclair Television Group Inc. set pricing on its $3,725,000,000 incremental term loan B (Ba1/BB+) due 2024 at Libor plus 250 basis points, the low end of the Libor plus 250 bps to 275 bps talk, according to a market source.

In addition, the original issue discount talk on the term loan was changed to a range of 99.5 to 99.75 from just 99.5, the source said.

Also, the ticking fee was modified to half the spread from days 31 to 60, the full spread from days 61 to 120 and the full spread plus Libor thereafter, from half the spread from days 46 to 90, the full spread from days 91 to 120 and the full spread plus Libor thereafter.

The term loan still has a 0% Libor floor.

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

Recommitments were scheduled to be due at 2 p.m. ET on Monday, the source added.

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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