Sinclair’s Diamond Sports Starts Bond Swap to Manage Debt Load
- Secured noteholders asked to exchange for second-lien bonds
- Plans call for new loans as network builds out streaming app
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Diamond Sports Group LLC, the heavily indebted network owned by Sinclair Broadcast Group Inc., is seeking to swap some of its distressed bonds and loosen covenants so it can take out new loans and launch a streaming app.
The company said in a statement Tuesday it’s looking to exchange more than $3 billion of 5.375% senior secured notes due 2026 for new secured second-lien notes with the same coupon and maturity. It’s also asking holders to waive certain debt protections so it can add new debt, including a $635 million first-lien loan, and take on a second-priority term loan and revolving credit line in exchange for existing debt.