Sinclair prices $1.43 billion secured notes offering

BALTIMORE - Sinclair, Inc. (NASDAQ:SBGI) has successfully priced a private offering of $1.43 billion in secured notes due 2033, the company announced Monday. The notes, issued at par, will carry an annual interest rate of 8.125% with semi-annual payments starting August 15, 2025, and reaching maturity on February 15, 2033. According to InvestingPro data, this offering adds to Sinclair’s existing total debt of $4.29 billion, reflecting the company’s significant leverage position.

The offering, expected to close on February 12, 2025, is contingent upon customary closing conditions and the completion of other financing transactions as outlined in the Transaction (JO:TCPJ) Support Agreement. Sinclair Television Group, Inc., a subsidiary of Sinclair, plans to allocate the net proceeds from the offering to repay existing term loans, purchase notes under the Transaction Support Agreement, and cover related transaction fees and expenses. InvestingPro analysis shows the company maintains a current ratio of 1.91, indicating sufficient liquid assets to meet short-term obligations despite its debt burden.

These first-out first lien secured notes are not registered under the Securities Act of 1933 and will be available to certain institutional buyers and non-U.S. persons in compliance with applicable regulations.

The company has cautioned that this press release does not serve as an offer to sell or a solicitation of an offer to buy the 2033 Notes, nor will the notes be sold in jurisdictions where such an offering would be unlawful. The release also does not constitute an offer to purchase or exchange any other securities or a notice of redemption.

Sinclair’s forward-looking statements indicate expectations for the transactions but are subject to risks and uncertainties that could cause actual outcomes to differ. These include potential changes affecting the Transaction Support Agreement, negotiations, closing conditions, and the company’s ability to realize the anticipated benefits from the transactions. With the company’s next earnings report due on February 19, 2025, investors seeking deeper insights can access comprehensive financial analysis and additional ProTips through InvestingPro’s detailed research reports.

The information provided is based on a press release statement from Sinclair, Inc. Based on current market conditions and fundamentals, InvestingPro’s Fair Value analysis suggests the stock may be slightly undervalued at its current trading level of $14.64.

In other recent news, Sinclair Broadcasting Group has been actively addressing its impending debt situation, currently standing at $4.29 billion. The company recently announced plans to restructure its capital, which according to Benchmark analyst Daniel L. Kurnos, appear favorable. Sinclair’s efforts have resulted in extended significant debt maturities to 2029, potentially averting near-term maturity concerns.

Simultaneously, Sinclair has reported a 20% increase in consolidated media revenues, reaching $908 million, largely due to a record $138 million in political advertising revenue. Additionally, the company’s adjusted EBITDA saw a 72% increase compared to the previous year, and its cash holdings rose to $334 million.

The company also launched two new divisions, AMP (OTC:AMLTF) Sales & Marketing Solutions and AMP Media, aimed at enhancing its advertising and content offerings. In addition, Sinclair renewed its NBC affiliation for 21 stations, ensuring continued access to NBC programming for nearly 7 million U.S. households.

Furthermore, Sinclair announced key executive promotions within its corporate structure and various subsidiaries. Lastly, the company expects media revenues between $992 million and $1 billion for the fourth quarter and anticipates growth in net retransmission revenues through 2025. These are just some of the recent developments for Sinclair Broadcasting Group.

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