Sinclair Broadcast Seeks $1 Billion in Loans for Refinancing
Sinclair Broadcast Group Inc. (SBGI), a television broadcaster, is seeking $1 billion in loans to refinance debt, the company said today in statement distributed by PR Newswire.
JPMorgan Chase & Co. is leading the transaction, according to a person with knowledge of the matter who asked not to be identified because the deal is private. The financing includes a $500 million term loan A expiring in April 2018, a $400 million term loan B that comes due in April 2020 and a $100 million revolving line of credit that will mature in April 2018, according to the statement.
Proceeds of the loan will refinance debt and support the acquisitions of Barrington Broadcasting Group and certain Cox Media Group stations, according to Hunt Valley, Maryland-based Sinclair.
The company is also selling $600 million of bonds that will expire in 2021, proceeds of which will be used to pay down debt under Sinclair’s loan pact, the company said in a separate statement.
Sinclair had $2.27 billion of debt as of Dec. 31, it said in a March 12 regulatory filing.
A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, bank loan mutual funds and hedge funds. A term loan A is sold mainly to banks. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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