Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) announced today that its wholly-owned subsidiary, Sinclair Television Group, Inc., intends to offer in a private placement, subject to market conditions and other factors, $550 million aggregate principal amount of Senior Secured Notes due 2030.
The net proceeds from the private placement of the 2030 Notes are intended to be used to fund the Issuer's redemption of its 5.625% Senior Notes due 2024 (the "2024 Notes"). On November 19, 2020, the Issuer notified the trustee of the 2024 Notes that it intends to redeem, in full, its outstanding $550 million aggregate principal amount of the 2024 Notes on December 4, 2020 (the "Redemption Date"). The redemption of the 2024 Notes is conditioned upon the Issuer's successful incurrence of new debt financing generating gross proceeds of at least $550 million, which is expected to be satisfied upon closing of the offering of the 2030 Notes.
The redemption will be effected in accordance with the terms of the indenture governing the 2024 Notes. The redemption price will be equal to the sum of 101.875% of the principal amount of the 2024 Notes outstanding together with accrued and unpaid interest on the principal amount being redeemed up to, but not including, the Redemption Date. The redemption of the 2024 Notes, including the payment of accrued and unpaid interest and related fees and expenses, is expected to be funded from the net proceeds of the 2030 Notes and cash on hand.
About Sinclair Broadcast Group, Inc.
Sinclair is a diversified media company and leading provider of local sports and news. The Company owns and/or operates 23 regional sports network brands; owns, operates and/or provides services to 190 television stations in 88 markets; is a leading local news provider in the country; owns multiple national networks; and has TV stations affiliated with all the major broadcast networks. Sinclair's content is delivered via multiple platforms, including over-the-air, multi-channel video program distributors, and digital platforms. The Company regularly uses its website as a key source of Company information which can be accessed at www.sbgi.net.
