Sinclair’s Sports Network Debt Swap Offer Shunned by Bondholders
- Investors organized after company proposed a steep haircut
- Loose covenants still give Sinclair the option to move assets
Source: Getty Images
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Sinclair Broadcast Group Inc.’s attempt to ease the debt load of its regional sports network unit was resisted by investors who balked at the steep haircut on a bond swap.
Only $66 million of eligible bonds, or 3.62%, were tendered by the final deadline on Tuesday, according to a news release on Thursday, showing no increase from an earlier cut-off date that offered more favorable terms to investors.