Diamond Sports Group LLC and Diamond Sports Finance Company, two indirect subsidies of Sinclair Broadcast Group, have completed the final settlement of their previously announced private debt exchange offer.
This means that holders of Diamond’s outstanding 5.375% Senior Secured Second Lien Notes due 2026 should now be in possession of Diamond’s outstanding 5.375% Senior Secured Notes due 2026.
Completion of the private debt swap came March 15.
This exchange saw terms set forth on February 14, and active engagement. As of 5pm Eastern on February 28, approximately $3.036 billion aggregate principal amount, representing approximately 99.5%, of the outstanding Existing Secured Notes not owned by the Sinclair subsidiaries had been validly tendered (and not validly withdrawn).
“As a result, the aggregate principal amount of Exchange Secured Second Lien Notes that was issued in exchange for Existing Secured Notes tendered on or prior to the Early Tender Time was approximately $3,036 million,” Sinclair explains in a release distributed March 16 by the company.
Settlement for the Exchange Secured Second Lien Notes occurred on March 1.
From here, the financial language gets heavy.
“Following the Early Tender Time and at or prior to the Expiration Date, an additional $3,852,000 aggregate principal amount, representing approximately 0.1%, of outstanding Existing Secured Notes not owned by the Issuers or any of their affiliates, had been validly tendered (and not validly withdrawn) pursuant to the Exchange Offer and the corresponding consents were delivered (and not validly revoked) pursuant to the Consent Solicitation. As a result, the aggregate principal amount of Exchange Secured Second Lien Notes that was issued in exchange for Existing Secured Notes tendered following the Early Tender Time but at or prior to the Expiration Date was $3,809,000. Settlement for such Exchange Secured Second Lien Notes occurred on March 16, 2022 (the “Final Settlement Date”).”
Furthermore, immediately following the Final Settlement Date, approximately $3.04 billion aggregate principal amount of Exchange Secured Second Lien Notes and approximately $10 million aggregate principal amount of Existing Secured Notes remained outstanding.
The Exchange Secured Second Lien Notes issued on March 1 and the Exchange Secured Second Lien Notes issued on the Final Settlement Date are fungible.
