Market Overview

Sinclair Broadcasting Group Closes TV Station Purchases

Related SBGI
Top 4 NASDAQ Stocks In The Broadcasting-TV Industry With The Highest ROE
Sinclair Broadcast Names David Amy Operations Chief
Broadcaster Shares Rally on Aereo Decision (Fox Business)

Sinclair Broadcast Group, Inc. (Nasdaq: SBGI) announced that it has closed on the previously announced acquisitions of certain television stations and, in a new announcement, purchased WHAM-TV (ABC) in Rochester, NY from Newport Television LLC ("Newport"). 

The stations acquired in the transactions that have closed, effective December 1, 2012, are:

WTTA (MNT) Tampa, Florida previously operated by Sinclair pursuant to a local marketing agreement. KBTV (FOX) Beaumont/Port Arthur, Texas market previously owned by Nexstar Broadcasting.

The following stations from Newport: WKRC (CBS) Cincinnati, Ohio WOAI (NBC) San Antonio, Texas WHP (CBS) Harrisburg/Lancaster/Lebanon/York, Pennsylvania WPMI (NBC) and WJTC (IND) Mobile, Alabama KSAS (FOX) Wichita/Hutchinson, Kansas WHAM (ABC) Rochester, New York

Sinclair also acquired Newport's rights under the local marketing agreements with WLYH (CW) in Harrisburg, PA and KMTW (MNT) in Wichita, KS, as well as options to acquire the license assets. 

The Company also closed on agreements with Deerfield Media, Inc. ("Deerfield"), selling Deerfield the license assets of Sinclair's station in San Antonio (KMYS CW), and Sinclair's station in Cincinnati (WSTR MY), as well as the license assets of WPMI and WJTC in the Mobile/Pensacola market and KBTV in Beaumont.  Sinclair will provide sales and other non-programming services to each of these five stations pursuant to shared services and joint sales agreements.

In a new announcement, Sinclair purchased the non-license assets of Newport's station, WHAM-TV (ABC) in Rochester, New York for $54.0 million plus the option for the license assets.  Sinclair will provide sales and other non-programming services pursuant to a shared service and joint sales agreement.

The acquisitions add two new markets and additional stations in four markets where Sinclair already has a presence.  The net amount paid at closing, net of any previously paid deposits and sale proceeds, was $459.7 million, which was funded by the issuance of $500 million of 6.125% senior notes due 2022 earlier this quarter.   

Posted-In: News M&A

 

Related Articles (SBGI)

Around the Web, We're Loving...

Get Benzinga's Newsletters