Sinclair Closes Partial Refinancing and Extension of STG Credit Facilities
April 01 2021 - 4:30PM
Business Wire
Sinclair Broadcast Group, Inc. (“Sinclair” or the “Company”)
(Nasdaq: SBGI) announced today that its wholly-owned subsidiary,
Sinclair Television Group, Inc. (“STG”), has entered into the Third
Amendment (“Third Amendment”) to its Seventh Amended and Restated
Credit Agreement, dated as of August 23, 2019, as amended with
JPMorgan Chase Bank, N.A., as administrative agent, the guarantors
party thereto and the lenders and other parties thereto, to, among
other things, effect an extension of the maturity of a certain
portion of its existing term loan B-1 tranche, which has a maturity
date of January 3, 2024. Pursuant to the Third Amendment, STG
incurred new term loans in an aggregate principal amount of $740
million, certain of the proceeds of which term loans are being used
to partially refinance the existing term loan B-1 tranche. The new
term loans will mature on April 1, 2028 and will bear interest, at
the option of STG, at LIBOR (or successor rate) plus 3.00% or at
base rate plus 2.00%.
This description of the Third Amendment is only a summary, and
is qualified in its entirety by reference to the complete
amendment, a copy of which will be filed today with the Securities
and Exchange Commission (“SEC”) as an exhibit to a Current Report
on Form 8-K.
Forward-Looking
Statements:
The matters discussed in this news release include
forward-looking statements regarding, among other things, future
events and actions. When used in this news release, the words
“outlook,” “intends to,” “believes,” “anticipates,” “expects,”
“achieves,” “estimates,” and similar expressions are intended to
identify forward-looking statements. Such statements are subject to
a number of risks and uncertainties. Actual results in the future
could differ materially and adversely from those described in the
forward-looking statements as a result of various important
factors, including and in addition to the assumptions set forth
therein, but not limited to: STG’s ability to consummate the
proposed amendment and extension of certain loans under its credit
facility; the potential impacts of the COVID-19 pandemic on our
business operations, financial results and financial position and
on the world economy, including the significant disruption to the
operations of the professional sports leagues, need to provide
rebates to our distributors related to canceled professional
sporting events, and loss of advertising revenue due to
postponement or cancellation of professional sporting events, and
reduced consumer spending as a result of shelter in place and stay
at home orders; our ability to generate cash to service our
substantial indebtedness; successful execution of outsourcing
agreements; the successful execution of retransmission consent
agreements; the successful execution of network affiliation and
distribution agreements; the successful execution of media rights
agreements with professional sports teams; the impact of OTT and
other emerging technologies and their potential impact on
cord-cutting; the impact of distributors offering "skinny"
programming bundles that may not include all programming of our
networks; pricing and demand fluctuations in local and national
advertising; volatility in programming costs; the market acceptance
of new programming; our ability to identify and consummate
acquisitions and investments, to manage increased leverage
resulting from acquisitions and investments, and to achieve
anticipated returns on those investments once consummated; the
impact of pending and future litigation claims against the Company;
the impact of FCC and other regulatory proceedings against the
Company, uncertainties associated with potential changes in the
regulatory environment affecting our business and growth strategy;
and any risk factors set forth in the Company's recent reports on
Form 10-Q and/or Form 10-K, as filed with the Securities and
Exchange Commission. The Company undertakes no obligation to
publicly release the result of any revisions to these
forward-looking statements except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210401005893/en/
Investor Contacts: Steve Zenker, VP, Investor Relations
Billie-Jo McIntire, Director, Investor Relations (410) 568-1500
Media Contact: Michael Padovano mpadovano@5wpr.com
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