Sinclair Announces Any and All Private Debt Exchange Offer and Consent Solicitation of 4.375% Second-Out First Lien Secured Notes of Sinclair Television Group
Sinclair Television Group (STG) has launched a private exchange offer for its 4.125% Senior Secured Notes due 2030, offering new 4.375% Second-Out First Lien Secured Notes due 2032. The exchange offer is accompanied by a consent solicitation to modify the existing indenture terms.
Holders who tender their notes before the Early Tender Time (February 7, 2025) will receive $1,000 in new notes per $1,000 of existing notes, while those tendering after will receive $990 in new notes. The exchange offer expires on March 7, 2025.
The company has already secured support from holders representing the required two-thirds majority consent. The new notes will be guaranteed by Sinclair Broadcast Group and its subsidiaries, with interest payable semi-annually at 4.375%. The offer is to qualified institutional buyers and non-U.S. persons under specific regulatory conditions.
Sinclair Television Group (STG) ha lanciato un'offerta di scambio privata per i suoi 4.125% Senior Secured Notes in scadenza nel 2030, offrendo nuovi 4.375% Second-Out First Lien Secured Notes in scadenza nel 2032. L'offerta di scambio è accompagnata da una sollecitazione di consenso per modificare i termini dell'atto esistente.
I titolari che presentano i loro titoli prima del Early Tender Time (7 febbraio 2025) riceveranno $1,000 in nuovi titoli per ogni $1,000 di titoli esistenti, mentre coloro che tenderanno dopo riceveranno $990 in nuovi titoli. L'offerta di scambio scade il 7 marzo 2025.
L'azienda ha già ottenuto il supporto da parte di titolari che rappresentano il consenso necessario di due terzi della maggioranza. I nuovi titoli saranno garantiti da Sinclair Broadcast Group e dalle sue filiali, con interessi pagabili semestralmente al 4.375%. L'offerta è rivolta a compratori istituzionali qualificati e a soggetti non americani sotto specifiche condizioni normative.
Sinclair Television Group (STG) ha lanzado una oferta de intercambio privada para sus Notas Senior Aseguradas del 4.125% con vencimiento en 2030, ofreciendo nuevas Notas Aseguradas de Primer Gravamen del 4.375% con vencimiento en 2032. La oferta de intercambio está acompañada de una solicitud de consentimiento para modificar los términos del contrato existente.
Los tenedores que presenten sus notas antes del Early Tender Time (7 de febrero de 2025) recibirán $1,000 en nuevas notas por cada $1,000 de notas existentes, mientras que aquellos que presenten después recibirán $990 en nuevas notas. La oferta de intercambio expira el 7 de marzo de 2025.
La empresa ya ha asegurado el apoyo de tenedores que representan el consentimiento de la mayoría requerida de dos tercios. Las nuevas notas serán garantizadas por Sinclair Broadcast Group y sus filiales, con intereses pagaderos semestralmente al 4.375%. La oferta está dirigida a compradores institucionales calificados y a personas no estadounidenses bajo condiciones regulatorias específicas.
Sinclair Television Group (STG)는 2030년 만기를 가진 4.125% Senior Secured Notes에 대한 개인 교환 제안을 시작했으며, 2032년 만기를 가진 새로운 4.375% Second-Out First Lien Secured Notes를 제공하고 있습니다. 교환 제안은 기존 계약 조건을 수정하기 위한 동의 요청이 동반됩니다.
조기 제출 마감 시간 (2025년 2월 7일) 이전에 노트를 제출하는 보유자는 기존 노트 $1,000당 새로운 노트 $1,000을 받게 되며, 이후에 제출한 경우 새로운 노트 $990을 받습니다. 교환 제안은 2025년 3월 7일에 만료됩니다.
회사는 이미 필요한 2/3의 동의를 나타내는 보유자로부터 지지를 확보했습니다. 새로운 노트는 Sinclair Broadcast Group 및 그 자회사가 보증하며, 이자는 4.375%의 반기별로 지급됩니다. 이 제안은 자격을 갖춘 기관 투자자와 특정 규제 조건 하에 비미국인에게 제공됩니다.
Sinclair Television Group (STG) a lancé une offre d'échange privée pour ses 4,125 % Senior Secured Notes arrivant à échéance en 2030, en proposant de nouvelles 4,375 % Second-Out First Lien Secured Notes arrivant à échéance en 2032. L'offre d'échange est accompagnée d'une sollicitation de consentement pour modifier les termes de l'acte existant.
Les détenteurs qui présentent leurs notes avant le Early Tender Time (7 février 2025) recevront 1 000 $ de nouvelles notes pour chaque 1 000 $ de notes existantes, tandis que ceux qui les présentent après recevront 990 $ de nouvelles notes. L'offre d'échange expire le 7 mars 2025.
L'entreprise a déjà sécurisé le soutien de détenteurs représentant le consentement nécessaire des deux tiers. Les nouvelles notes seront garanties par Sinclair Broadcast Group et ses filiales, avec des intérêts payables semestriellement à 4,375 %. L'offre est destinée aux acheteurs institutionnels qualifiés et aux personnes non américaines sous certaines conditions réglementaires.
Sinclair Television Group (STG) hat ein privates Austauschangebot für seine 4.125 % Senior Secured Notes, die 2030 fällig werden, gestartet und bietet neue 4.375 % Second-Out First Lien Secured Notes, die 2032 fällig werden, an. Das Austauschangebot wird von einer Zustimmungseinholung begleitet, um die bestehenden Vertragsbedingungen zu ändern.
Inhaber, die ihre Notes vor der Early Tender Time (7. Februar 2025) einreichen, erhalten $1.000 in neuen Notes pro $1.000 bestehender Notes, während diejenigen, die später einreichen, $990 in neuen Notes erhalten. Das Austauschangebot läuft am 7. März 2025 ab.
Das Unternehmen hat bereits die Unterstützung von Inhabern gesichert, die die erforderliche Zweidrittel-Mehrheit des Konsenses repräsentieren. Die neuen Notes werden von der Sinclair Broadcast Group und ihren Tochtergesellschaften garantiert, mit halbjährlich fälligen Zinsen in Höhe von 4.375 %. Das Angebot richtet sich an qualifizierte institutionelle Käufer und nicht-amerikanische Personen unter bestimmten regulatorischen Bedingungen.
- Support Agreement Consenting Holders already hold required two-thirds majority consent
- Early tender offers full 1:1 exchange ratio ($1,000 for $1,000)
- New notes maintain similar interest rate structure (4.375% vs 4.125%)
- Late tender offers lower exchange ratio ($990 for $1,000)
- New notes extend maturity to 2032 from 2030
- Higher interest rate on new notes (4.375% vs 4.125%)
Insights
This debt exchange represents a significant strategic maneuver by Sinclair to optimize its capital structure. The company is offering to exchange
- The modest 25 basis point rate increase suggests Sinclair maintains relatively strong market position despite industry headwinds
- The extension of maturity from 2030 to 2032 provides enhanced financial flexibility and improved debt maturity profile
- The consent solicitation to eliminate restrictive covenants signals management's desire for increased operational flexibility
- The transition of remaining notes to unsecured status indicates a broader liability management strategy to optimize the company's collateral structure
The transaction's structure, offering par value for early participants versus
Concurrently with the Exchange Offer, the Issuer is soliciting consents (the “Consent Solicitation”) from Eligible Holders of the Existing Notes with respect to certain amendments, supplements and other modifications (the “Proposed Amendments”) to the indenture governing the Existing Notes (the “Existing Indenture”). The Proposed Amendments would, among other things (a) eliminate substantially all of the restrictive covenants and certain of the events of default and related definitions contained in the Existing Indenture, (b) permit the Issuer to consummate the financing transactions (the “Other Transactions”) described in the previously disclosed transaction support agreement (the “Transaction Support Agreement”) and (c) provide for the termination of the liens on the collateral securing the Existing Notes that remain outstanding following completion of the Exchange Offer and Consent Solicitation (as amended, the “
The Issuer must receive the consents from holders of at least two-thirds (66 2/
The Exchange Offer and Consent Solicitation, including the Issuer’s acceptance of validly tendered Existing Notes and payment of the applicable consideration, is conditioned on the satisfaction or waiver of certain conditions precedent, including, but not limited to, the substantially contemporaneous consummation of the Other Transactions, as further described in the Offer Documents. The Issuer may terminate, withdraw, amend or extend the Exchange Offer and/or Consent Solicitation in its sole discretion, subject to certain exceptions.
As of the date hereof, the Support Agreement Consenting Holders have agreed to deliver the Requisite Notes Consents, and the lenders party to the Transaction Support Agreement hold an aggregate principal amount of the Issuer’s outstanding loans and commitments under its existing credit facilities under its existing credit agreement, in each case, necessary to consent to the Other Transactions and the Exchange Offer and Consent Solicitation. By executing the Transaction Support Agreement, the lenders and noteholders party thereto agreed, among other things, to use commercially reasonable efforts to support and take all commercially reasonable actions necessary or reasonably requested by the Issuer to facilitate the consummation of the Other Transactions and the Exchange Offer and Consent Solicitation.
The following table sets forth the consideration offered in the Exchange Offer and Consent Solicitation Statement:
|
|
Consideration per |
|
CUSIP/ISIN |
Outstanding Principal Amount of Existing Notes |
Total Consideration if Tendered at or prior to the Early Tender Time |
Exchange Consideration if Tendered after the Early Tender Time |
144A: 829259BA7 / US829259BA72; REG S: U8275QAK6 / USU8275QAK68
|
|
|
|
The Exchange Offer will expire at 11:59 p.m.,
The Issuer will settle all exchanges promptly after the Early Tender Time (the “Early Settlement Date”) and/or Expiration Time (the “Final Settlement Date”). The Early Settlement Date is expected to occur on February 12, 2025, three business days following the Early Tender Time, assuming the conditions to the Exchange Offer have either been satisfied or waived by the Issuer at or prior to the Expiration Time. The Final Settlement Date is expected to occur on March 12, 2025, three business days following the Expiration Time, assuming the conditions to the Exchange Offer have either been satisfied or waived by the Issuer at or prior to the Expiration Time.
In addition to the exchange consideration set out in the applicable column in the table above, Eligible Holders whose Existing Notes are accepted for exchange will receive a cash payment equal to the accrued and unpaid interest on such Existing Notes from and including the immediately preceding interest payment date for such Existing Notes to, but excluding, the Early Settlement Date. For the avoidance of doubt, accrued interest for such Existing Notes will cease to accrue on the Early Settlement Date for all Existing Notes accepted in the Exchange Offer and Eligible Holders whose Existing Notes are tendered after the Early Settlement Date and are accepted for purchase will not receive payment in respect of any interest for the period from and including the Early Settlement Date. Under no circumstances will any interest be payable because of any delay in the transmission of funds to Eligible Holders by DTC or its participants.
Holders delivering their consent pursuant to the Consent Only Option must deliver (and not validly revoke) their consents by 5:00 p.m.,
The Exchange Second-Out Notes will mature on December 31, 2032. The Issuer will pay interest at a rate of
The Issuer’s obligations under the Exchange Second-Out Notes will be jointly and severally guaranteed, on a senior unsecured basis, by Sinclair Broadcast Group, Inc., the Issuer’s direct parent (“SBG”), and each wholly-owned subsidiary of the Issuer or SBG that guarantees the Issuer’s new credit agreement entered into upon consummation of the Other Transactions and the Exchange Offer.
The Exchange Offer is being made, and the Exchange Second-Out Notes are being offered and issued, only to holders of Existing Notes who are reasonably believed to be (i) “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) or (ii) not
J.P. Morgan Securities LLC will act as sole Dealer Manager for the Exchange Offer and Consent Solicitation.
The Offer Documents will be distributed only to holders of Existing Notes that complete and return a letter of eligibility confirming that they are Eligible Holders. Copies of the eligibility letter are available to holders through the information and exchange agent for the Exchange Offer and Consent Solicitation, Ipreo LLC, at (888) 593-9546 (
The Exchange Offer and Consent Solicitation is made only by, and pursuant to the terms of, the Offer Documents, and the information in this news release is qualified by reference thereto.
This press release shall not constitute an offer to sell or the solicitation of an offer to exchange or purchase the Exchange Second-Out Notes, nor shall there be any offer or exchange of the Exchange Second-Out Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful. In addition, this press release is neither an offer to exchange or purchase nor a solicitation of an offer to sell any Existing Notes in the Exchange Offer or a solicitation of consents to the Proposed Amendments, and this press release does not constitute a notice of redemption with respect to any securities.
The Exchange Second-Out Notes have not been and will not be registered under the Securities Act or any state securities laws and may not be offered or sold in
Forward-Looking Statements:
The matters discussed in this news release, particularly those in the section labeled “Outlook,” include forward-looking statements regarding, among other things, the Other Transactions. When used in this news release, the words “outlook,” “intends to,” “believes,” “anticipates,” “expects,” “achieves,” “estimates,” and similar expressions are intended to identify forward-looking statements. Such statements are subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those described in the forward-looking statements as a result of various important factors, including and in addition to the assumptions set forth therein, but not limited to, the occurrence of any event, change or other circumstance that could give rise to the termination of the Other Transactions or the Exchange Offer and/or Consent Solicitation, the ability to negotiate and reach agreement on definitive documentation relating to the Other Transactions or the Exchange Offer and/or Consent Solicitation, the ability to satisfy closing conditions to the completion of the Other Transactions or the Exchange Offer and/or Consent Solicitation; the Company’s ability to achieve the anticipated benefits from the Other Transactions and the Exchange Offer and/or Consent Solicitation; other risks related to the completion of the Other Transactions, the Exchange Offer or the Consent Solicitation and actions related thereto, the Company’s ability the rate of decline in the number of subscribers to services provided by traditional and virtual multi-channel video programming distributors (“Distributors”); the Company’s ability to generate cash to service its substantial indebtedness; the successful execution of outsourcing agreements; the successful execution of retransmission consent agreements; the successful execution of network and Distributor affiliation agreements; the Company’s ability to identify and consummate acquisitions and investments, to manage increased financial leverage resulting from acquisitions and investments, and to achieve anticipated returns on those investments once consummated; the Company’s ability to compete for viewers and advertisers; pricing and demand fluctuations in local and national advertising; the appeal of the Company’s programming and volatility in programming costs; material legal, financial and reputational risks and operational disruptions resulting from a breach of the Company’s information systems; the impact of FCC and other regulatory proceedings against the Company; compliance with laws and uncertainties associated with potential changes in the regulatory environment affecting the Company’s business and growth strategy; the impact of pending and future litigation claims against the Company; the Company’s limited experience in operating or investing in non-broadcast related businesses; and any risk factors set forth in the Company’s recent reports on Form 10-Q and/or Form 10-K, as filed with the Securities and Exchange Commission. There can be no assurances that the assumptions and other factors referred to in this release will occur. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements except as required by law.
Category: Financial
View source version on businesswire.com: https://www.businesswire.com/news/home/20250126424154/en/
Investor Contacts:
Chris King, VP, Investor Relations
Billie-Jo McIntire, VP, Corporate Finance
(410) 568-1500
Source: Sinclair, Inc.
FAQ
What is the exchange ratio for Sinclair's (SBGI) new 4.375% notes if tendered before the Early Tender Time?
When does Sinclair's (SBGI) debt exchange offer expire?
What is the interest rate and maturity date for Sinclair's (SBGI) new exchange notes?
Who is eligible to participate in Sinclair's (SBGI) debt exchange offer?
What happens to accrued interest in Sinclair's (SBGI) exchange offer?
