CHATHAM,
N.J., June 3, 2024 /PRNewswire/ -- Chatham
Asset Management, LLC ("Chatham"),
a private investment firm that through certain of its affiliates is
one of the largest creditors of Sinclair, Inc. ("Sinclair" or the
"Company") (NASDAQ: SBGI), today sent a letter to Sinclair's
President and Chief Executive Officer, Christopher S. Ripley, and Board of Directors
regarding efforts by the Company to address its near-term debt
maturities.
The full text of the letter follows:
June 3, 2024
Sinclair, Inc.
Attn: Mr. Chris Ripley, Chief
Executive Officer
10706 Beaver Dam Road
Hunt Valley, MD 21030
Dear Mr. Ripley,
Chatham Asset Management, LLC and certain funds it manages
("Chatham") is one of Sinclair,
Inc.'s ("Sinclair" or the "Company") largest creditors, owning in
excess of $500 million of the 4.125%
Senior Secured Notes due 2030 and 5.500% Senior Notes due 2030. We
are writing to follow up on our recent dialogue about the Company's
capital structure.
Chatham understands that
management's focus with respect to Sinclair's balance sheet has
turned to its near-term maturities, particularly the Term B-2
Loans[1] maturing in 2026. We are very supportive of a more
traditional refinancing effort, like an exchange, as opposed to
more complicated machinations that purport to divide the Company's
collateral supporting its existing debt.
Specifically, Chatham would
support a public or private exchange of Sinclair's existing debt
securities into a new junior lien bond to facilitate the
refinancing process. We believe term loan lenders would be
supportive of such a transaction, as it would lower leverage
through the first lien debt and preserve the collateral available
to first lien lenders.
We think this is the best option for Sinclair and its
stakeholders and would strengthen the market's confidence in the
Company. To the contrary, a more complicated refinancing effort
that divides pledged collateral would alienate existing creditors
and lead to further stress on the Company's existing debt and
equity.
Chatham remains committed to a
constructive relationship with Sinclair and its management. We look
forward to helping the Company address its upcoming maturities in
an efficient way that right-sizes the balance sheet, creates
operational runway, and loosens financial constraints.
Sincerely,
/s/ Anthony Melchiorre
Anthony Melchiorre
Managing Member
Chatham Asset Management
1 Term B-2 Loans under the Seventh Amended and
Restated Credit Agreement among Sinclair Television Group,
Inc. (as Borrower), dated as of April 21,
2022.
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SOURCE Chatham Asset Management, LLC