Sinclair Broadcast Group Inc., which had said it might be forced to file for bankruptcy protection because of substantial debt coming due, said it has reached a tentative deal to pay off nearly $438 million in convertible notes.
Under an agreement reached with a committee of note holders, Sinclair subsidiary Sinclair Television Group would issue notes that would mature in 2014 and be secured by a second lien on assets securing the television group’s bank credit facility.
The broadcaster would use the proceeds to repurchase outstanding debt from note holders who are entitled to exercise options in May 2010 and January 2011. The company said it has a total $438 million of those convertible notes outstanding. More…