Sinclair Broadcast launches $4.88 billion two-part notes in resized tranches; pricing Thursday

By Paul A. Harris

Portland, Ore., July 18 – Sinclair Broadcast Group Inc. launched $4,875,000,000 of notes in secured and unsecured tranches on Thursday, shifting $500 million to the secured tranche from the unsecured tranche, according to a market source.

The Baltimore-based broadcaster launched an upsized $3.05 billion amount of seven-year senior secured notes (Ba2/BB) at 5 3/8%, tight to earlier guidance in the 5½% area. The tranche is upsized from $2.55 billion.

The shift of proceeds left the eight-year unsecured notes (B2/B) downsized to $1,825,000,000 from $2,325,000,000. The unsecured notes launched at 6 5/8%, tighter than the 6¾% to 7% earlier guidance.

The deal is set to price on Thursday.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., RBC Capital Markets LLC, BofA Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Fifth Third Bank, Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. are the joint bookrunners.

The notes in both Rule 144A and Regulation S for life tranches come with three years of call protection.

Sinclair is issuing via its indirect, wholly owned subsidiaries Diamond Sports Group LLC and Diamond Sports Finance Co.

Proceeds will be used to help fund the acquisition of 21 Regional Sports Networks and Fox College Sports from the Walt Disney Co.

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