Sinclair talks $300 million 20-year convertibles at 2.5%-3%, up 32.5%-37.5%, to price Wednesday

By Kenneth Lim

Boston, May 2 - Sinclair Broadcast Group Inc. planned to price $300 million of 20-year convertible senior notes on Wednesday after the market closed, talked at a coupon of 2.5% to 3% and an initial conversion premium of 32.5% to 37.5%.

The convertible was offered at par.

There is an over-allotment option for a further $45 million.

Deutsche Bank and UBS Investment Bank were the bookrunners of the registered offering.

The convertible is non-callable for the first three years and may be put in years three, 10 and 15.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles have dividend and takeover protection.

Sinclair, a Hunt Valley, Md.-based television broadcasting company, said it will use the proceeds of the deal to partly redeem its 8% senior subordinated notes due 2012.

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