In an effort to boost its liquidity and better position itself for long-term growth, Sinclair Television Group and certain affiliates have entered into a “transaction support” agreement with some of its creditors for new financing and debt recapitalization to strengthen its balance sheet.
The deal, which will establish an up to $650 million revolving credit facility, covers lenders holding approximately 80% of the principal amount of STG’s outstanding loans under its existing credit facilities and approximately 75% of the amount held by holders of its secured notes. The proposed transactions are still being finalized and “conditioned on the satisfaction or waiver of certain conditions,” as well as the consent from lenders, Sinclair said on Tuesday.