Business
Sinclair Announces Assumption of Lender Obligations Under, and Amendments to, Diamond Sports Accounts Receivable Securitization Facility
BALTIMORE--(BUSINESS WIRE)-- Sinclair Broadcast Group, Inc. (NASDAQ: SBGI), (the “Company”) today announced that it has purchased and assumed the lenders’
About this update from Sinclair, Inc.
[{"type":"text","content":" BALTIMORE--(BUSINESS WIRE)--\nSinclair Broadcast Group, Inc. (NASDAQ: SBGI), (the “Company”) today announced that it has purchased and assumed the lenders’ and the administrative agent’s rights and obligations under the existing accounts receivable securitization facility (the “A/R Facility”) of its and Diamond Sports Group, LLC’s (“DSG”) indirect subsidiary, Diamond Sports Finance SPV, LLC (“Diamond SPV”). The Company purchased the lenders’ outstanding loans and commitments under the A/R Facility by making a payment to the lenders as consideration for the purchase of the lenders’ respective rights and obligations under the A/R Facility equal to approximately $184.4 million, representing 101% of the aggregate outstanding principal amount of the loans under the A/R Facility, plus any accrued interest and outstanding fees and expenses.\n\nIn connection therewith, the Company and Diamond SPV entered into an omnibus amendment to the A/R Facility to provide greater flexibility to DSG, including, among other things, (i) increasing the maximum facility limit availability from up to $250 million to up to $400 million; (ii) eliminating the early amortization event related to DSG’s EBITDA less interest expense covenant; (iii) extending the stated maturity date by one year from September 23, 2023 to September 23, 2024; and (iv) relaxing certain concentration limits thereby increasing the amounts of certain accounts receivable eligible to be sold. The other material terms of the A/R Facility remain unchanged.\n\n“We believe our decision to have the Company assume the lender obligations under the A/R Facility demonstrates our sensible long-term support of DSG,” said Chris Ripley, the Company’s Chief Executive Officer. Ripley continued, “The amendment will provide DSG with additional flexibility to manage its liquidity. At the same time, we believe the structure of the facility results in a low risk, high quality investment for the Company.”\n\nForward-Looking Statements:\n\nThe matters discussed in this news release include forward-looking statements regarding, among other things, future operating results. When used in this news release, the words \"outlook,\" \"intends to,\" \"believes,\" \"anticipates,\" \"expects,\" \"achieves,\" \"estimates,\" and similar expressions are intended to identify forward-looking statements. Such statements a...