Bloomberg News

Sinclair Said to Shift Funds in $530 Million Acquisition Loan

December 15, 2011

Dec. 14 (Bloomberg) -- Sinclair Broadcast Group Inc., the television broadcaster buying TV stations from Four Points Media and Freedom Communications Inc., shifted funds on $530 million of incremental loans to support the purchase, according to a person with knowledge of the matter.

A $280 million term loan B has been increased to $372.5 million, said the person, who declined to be identified because terms are private. The term A slice has been decreased to $157.5 million from $250 million, said the person, who declined to be identified because the deal is private.

The debt is being added to a $222.5 million B portion due in October 2016 and a $115 million term A credit that matures in March 2016, the company said in a Nov. 28 statement distributed by PR Newswire.

Sinclair, based in Hunt Valley, Maryland, will sell the term loan B debt at 99 cents on the dollar, the person said, reducing proceeds for the borrower and boosting the yield for investors.

JPMorgan Chase & Co. is arranging the deal and lenders must let the bank know by the end of today if they will participate in the deal, the person said. Lenders may receive portions of the loan tomorrow.

The company agreed to purchase broadcast assets from Freedom Communications for $385 million, according to a Nov. 2 statement. In September, it said it was buying Four Points Media television stations from Cerberus Capital Management LP for $200 million.

In a revolving credit, money can be borrowed again once it’s repaid; in a term loan, it can’t. A term loan B is sold mainly to non-bank lenders such as collateralized loan obligations, mutual funds and hedge funds, while a term loan A is sold mainly to banks.

--Editors: Faris Khan, Chapin Wright

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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