Sinclair greenshoe fully exercised, lifts 3% convertibles to $345 million

By Jennifer Chiou

New York, May 16 - Sinclair Broadcast Group Inc. said its $45 million over-allotment option was exercised in its entirety, increasing its issue of 3% convertible senior notes to $345 million.

After the close on May 2, the company priced $300 million of the 20-year convertibles within talk with an initial conversion premium of 33.3%.

As already reported, the convertibles were offered at par. The issue was talked at a coupon of 2.5% to 3% and an initial conversion premium of 32.5% to 37.5%.

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

The convertibles are 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.

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