BALTIMORE, Feb. 22, 2011 /PRNewswire/ -- Sinclair Broadcast Group, Inc. (the "Company") (Nasdaq: SBGI) announced today that its wholly-owned subsidiary, Sinclair Television Group, Inc. ("Sinclair") intends to refinance a portion of, and amend certain terms of, its existing bank credit facility.
Under the proposed terms, Sinclair would raise a $240.0 million tranche B term loan maturing 2016, and a new 5-year $100.0 million tranche A term loan. The new term loans, along with cash and/or revolving credit, would be used to repay the existing $270.0 million tranche B term loan which matures in October 2015 and redeem the $70 million principal amount of 6% convertible debentures due 2012 currently outstanding. Under the new term loans, Sinclair is expected to have more incremental loan capacity, increased television station acquisition capacity and more flexibility under the restrictive covenants.
This press release shall not constitute a notice of redemption of the 6% convertible debentures. A notice of redemption may only be made by a Notice of Redemption provided by the trustee to the holders of such securities.
Sinclair Broadcast Group, Inc., one of the largest and most diversified television broadcasting companies, currently owns and operates, programs or provides sales services to 58 television stations in 35 markets. The Company's television group reaches approximately 22% of U.S. television households and includes FOX, ABC, CBS, NBC, MNT and CW affiliates. The Company regularly uses its website as a key source of Company information and can be accessed at www.sbgi.net.
The matters discussed in this press release include forward-looking statements regarding, among other things, future operating results. When used, the words "outlook," "intends to," believes," "anticipates," "expects," "achieves," and similar expressions are intended to identify forward-looking statements and information. Such forward-looking information is subject to a number of risks and uncertainties. Actual results in the future could differ materially and adversely from those set forth in the forward-looking information as a result of various important factors, including and in addition to the assumptions set forth therein, but not limited to, whether or not Sinclair will be able to reach agreement with its senior lenders to amend its bank credit facility or redeem the 6% convertible debentures, the impact of changes in national and regional economies, the volatility in the U.S. and global economies and financial credit markets which impact our ability to forecast or refinance our indebtedness as its comes due, successful execution of outsourcing agreements, pricing and demand fluctuations in local and national advertising, volatility in programming costs, the market acceptance of new programming, the CW Television and MyNetworkTV programming, our news share strategy, our local sales initiatives, the execution of retransmission consent agreements, our ability to identify and consummate investments in attractive non-television assets and to achieve anticipated returns on those investments once consummated, and any risk factors set forth in the Company's recent reports on Form 8-K, Form 10-Q and/or Form 10-K, as filed with the Securities and Exchange Commission. There can be no assurance that the assumptions and other factors referred to will occur. The Company undertakes no obligation to update such forward-looking information in the future except as required by law.