Sinclair readies launch of $4 billion of term loans for Tuesday

By Sara Rosenberg

New York, July 8 – Sinclair Broadcast Group Inc. (Diamond Sports Group LLC) is scheduled to hold a lender meeting at 10:30 a.m. ET in New York on Tuesday to launch its $3.3 billion seven-year term loan and Sinclair Television Group Inc. will launch at the meeting its $700 million seven-year incremental term loan B, according to a market source.

JPMorgan Chase Bank, Deutsche Bank Securities Inc., RBC Capital Markets and BofA Securities Inc. provided the debt commitment.

Commitments are due at noon ET on July 18, the source added.

Based on filings with the Securities and Exchange Commission, Sinclair Broadcast is also expected to get a $300 million five-year revolver and Sinclair Television is expected to amend its existing credit agreement to get a $650 million revolver.

Proceeds will be used to help fund the acquisition of 21 Regional Sports Networks and Fox College Sports from the Walt Disney Co.

Other funds for the transaction are expected to come from $2.55 billion of senior secured notes and $2,325,000,000 of senior unsecured notes.

Furthermore, to help fund this acquisition, Diamond Sports has received a commitment from JPMorgan Chase Funding Inc. to purchase newly issued perpetual preferred equity of Diamond Sports for $1,025,000,000.

The transaction ascribes a total enterprise value to the assets equal to $10.6 billion, reflecting a purchase price of $9.6 billion, after adjusting for minority equity interests.

Closing is subject to customary conditions, including the approval of the U.S. Department of Justice.

Consolidated net leverage is expected to be 4.7 times and 5.1 times through the preferred financing.

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

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