Sinclair mulls option to redeem 8¾%, 8% notes, 6%, 4.875% convertibles

By Angela McDaniels

Seattle, Nov. 9 - Sinclair Broadcasting Group, Inc. is considering its option to redeem all of its outstanding 8¾% senior subordinated notes due 2011, 8% senior subordinated notes due 2012, 6% convertible debentures due 2012 or 4.875% convertible senior notes due 2018, according to a 10-Q report filed with the Securities and Exchange Commission on Thursday.

Under the indentures governing the notes, the company may redeem the 8¾% notes beginning Dec. 12 at a redemption premium of 4.375%, the 8% notes beginning March 15 at a redemption premium of 4% and the 4.875% convertibles beginning Jan. 15, 2011. The 6% convertibles became callable on Sept. 15, 2005 at a redemption premium of 1.2%.

The redemption premiums reduce incrementally to 0% after Dec. 12, 2009 for the 8¾% notes and March 15, 2010 for the 8% notes. The redemption premium fell to 0.6% at Sept. 15 for the 6% convertibles and will fall to 0% on Sept. 15, 2007.

Alternatively, Sinclair may continue to repurchase notes in the open market from time to time "when it makes financial sense."

The company said it repurchased $1.8 million of the 8% notes in the open market during the third quarter of 2006, $13.9 million of the 8% notes in the second quarter of 2006 and $8.0 million of the 8% notes and $8.6 million of the 6% convertibles in the first quarter of 2006.

Sinclair is a television broadcasting company based in Hunt Valley, Md.

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