By Kenneth Lim
Boston, May 3 - Sinclair Broadcast Group Inc. priced $300 million of 20-year convertible senior notes within talk on Wednesday to yield 3% with an initial conversion premium of 33.3%.
The convertible was offered at par. It was talked at a coupon of 2.5% to 3% and an initial conversion premium of 32.5% to 37.5%.
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. There is a contingent payment of an additional 0.375% subject to a hurdle at 120% of the principal.
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.
| Issuer: | Sinclair Broadcast Group Inc.
|
| Issue: | Convertible senior notes
|
| Bookrunners: | Deutsche Bank and UBS Investment Bank
|
| Amount: | $300 million
|
| Greenshoe: | $45 million
|
| Maturity: | May 15, 2027
|
| Coupon: | 3%
|
| Price: | Par
|
| Yield: | 3%
|
| Conversion premium: | 33.3%
|
| Conversion price: | $20.43
|
| Conversion ratio: | 48.9476
|
| Contingent conversion: | 130%
|
| Contingent payment: | 120%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before May 20, 2010
|
| Puts: | May 15, 2010; May 15, 2017; May 15, 2022
|
| Price talk: | 2.5%-3%, up 32.5%-37.5%
|
| Pricing date: | May 2, after the close
|
| Settlement date: | May 10
|
| Distribution: | Registered
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
