The Firm represented JPMorgan Chase Bank, Royal Bank of Canada and Bank of America in connection with approximately $10 billion of committed financing for Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) (“Sinclair”) in connection with its announced acquisition (the “RSN Acquisition”) of 21 regional sports networks (the “RSNs”) and Fox College Sports from The Walt Disney Company (NYSE: DIS). The RSNs will be acquired via a newly formed indirect wholly-owned subsidiary of Sinclair, Diamond Sports Group, LLC (the “RSN Borrower”).
The committed financing for the RSN Borrower consists of a $3.3 billion senior secured term loan B facility, a $300 million revolving credit facility, a $2.55 billion senior secured bridge facility and a $2.325 billion senior unsecured bridge facility. The committed financing for Sinclair Television Group, Inc., in connection with the acquisition, includes a $700 million incremental term B facility to fund a portion of Sinclair’s cash equity contribution. The lenders are also providing commitments for a $650 million extended revolving credit facility of Sinclair Television Group to refinance and/or replace its existing revolving credit facility.
The RSN Acquisition will also be funded with the proceeds of a commitment from an affiliate of JPMorgan Chase Bank to purchase $1.025 billion of newly-issued preferred equity of Diamond Sports Holdings LLC, a newly formed indirect wholly-owned subsidiary of Sinclair and an indirect parent company of the RSN Borrower.
Based in Hunt Valley, Maryland, Sinclair is one of the largest and most diversified television broadcasting companies in the country, a local news provider and a producer of live sports content. The RSN portfolio is the largest collection of regional sports networks in the marketplace today; its footprint includes exclusive local rights to 42 professional sports teams consisting of 14 Major League Baseball teams, 16 National Basketball Association teams and 12 National Hockey League teams.
The Simpson Thacher team for the financing included Justin Lungstrum, Edward Bersuder and Oliver Sall (Banking and Credit); John C. Ericson and Tony Rim (Capital Markets); Sergio Torres (Tax); Jake Phillips (ECEB); and Melanie Jolson (IP).