UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE TO
Tender Offer Statement under Section 14(d)(1) or 13(e)(1)
of the Securities Exchange Act of 1934
SINCLAIR BROADCAST GROUP, INC.
(Name of Subject Company (Issuer))
SINCLAIR TELEVISION GROUP, INC.
(Name of Filing Person (Offeror))
3.0% Convertible Senior Notes due 2027 4.875% Convertible Senior Notes due 2018 (Title of Class of Securities) |
829226AW9 829226AU3 (CUSIP Number of Class of Securities) |
David D. Smith
Chairman of the Board, President and Chief Executive Officer
Sinclair Television Group, Inc.
10706 Beaver Dam Road
Hunt Valley, Maryland 21030
(410) 568-1500
(Name, address, and telephone numbers of person authorized to
receive notices and communications on behalf of filing persons)
Copies to:
Jeffrey B. Grill, Esq.
Pillsbury Winthrop Shaw Pittman LLP
2300 N Street, NW
Washington, D.C. 20037
(202) 663-8000
CALCULATION OF FILING FEE
Transaction Valuation* | Amount of Filing Fee** | |
$429,044,000 | $23,941 | |
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Amount Previously Paid: | Not applicable. | |
Form or Registration No.: | Not applicable. | |
Filing party: | Not applicable. | |
Date filed: | Not applicable. |
Check the appropriate boxes below to designate any transactions to which the statement relates:
Check the following box if the filing is a final amendment reporting the results of the tender offer: o
If applicable, check the appropriate box(es) below to designate the appropriate rule provision(s) relied upon:
This Tender Offer Statement on Schedule TO relates to the offers by Sinclair Television Group, Inc., a Maryland corporation ("Sinclair Television Group" or the "Company"), to purchase for cash any and all of the $294.3 million aggregate principal amount outstanding of 3.0% Convertible Senior Notes due 2027 (the "3.0% Notes") at a price of $980 per $1,000 in principal amount, and the $143.5 million aggregate principal amount outstanding of 4.875% Convertible Senior Notes due 2018 (the "4.875% Notes" and, together with the 3.0% Notes, the "Securities") at a price of $980 per $1,000 in principal amount, of the Company's parent, Sinclair Broadcast Group, Inc., a Maryland corporation ("Sinclair"). Tendering holders of Securities that are accepted for purchase will also receive accrued and unpaid interest on the Securities from the last interest payment date to, but excluding, the Settlement Date, as defined in the Offer to Purchase, dated October 8, 2009 (as amended or supplemented from time to time, the "Offer to Purchase"). The Company's offers are being made upon the terms and subject to the conditions set forth in the Offer to Purchase and in the related Letter of Transmittal (as amended or supplemented from time to time, the "Letter of Transmittal"), copies of which are attached to this Schedule TO as Exhibits (a)(1)(i) and (a)(1)(ii), respectively (which together, as amended or supplemented from time to time, constitute the "Offers"). The Offers will expire at 12:00 midnight, New York City time, on Thursday, November 5, 2009, unless extended (such time and date, as it may be extended, the "Expiration Date"). This Tender Offer Statement on Schedule TO is intended to satisfy the reporting requirements of Rule 13e-4(c)(2) under the Securities Exchange Act of 1934, as amended.
All of the information set forth in the Offer to Purchase and the Letter of Transmittal is expressly incorporated herein by reference in answer to all items in this Schedule TO, and as more particularly set forth below:
The information set forth under the caption "Summary" in the Offer to Purchase is incorporated herein by reference.
ITEM 2. SUBJECT COMPANY INFORMATION.
(a) Name and Address. The name of the issuer of the Securities is Sinclair Broadcast Group, Inc. The address of Sinclair's principal executive offices is 10706 Beaver Dam Road, Hunt Valley, MD 21030. Its telephone number is (410) 568-1500.
(b) Securities. The subject classes of securities are Sinclair's 3.0% Convertible Senior Notes due 2027 and Sinclair's 4.875% Convertible Senior Notes due 2018. As of October 7, 2009, approximately $294.3 million in aggregate principal amount of the 3.0% Notes was outstanding, and approximately $143.5 million in aggregate principal amount of the 4.875% Notes was outstanding. The information set forth under the caption "The OffersDescription of the Securities" in the Offer to Purchase is incorporated herein by reference.
(c) Trading Market and Price. The Securities are not listed on any national or regional securities exchange or authorized to be quoted on any inter-dealer quotation system of any national securities association. Except for limited or sporadic quotations, there is no established trading market for the Securities. Sinclair's Class A common stock, into which the Securities are convertible, trades on the NASDAQ Global Select Market under the symbol "SBGI." The information set forth under the captions "Certain Significant ConsiderationsMarket and Trading Information for the Securities" and "Certain Significant ConsiderationsCommon Stock Market Price Information" in the Offer to Purchase is incorporated herein by reference.
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ITEM 3. IDENTITY AND BACKGROUND OF FILING PERSON.
(a) Name and Address. The Company is the filing person. The business address of the Company is 10706 Beaver Dam Road, Hunt Valley, MD 21030, and its telephone number is (410) 568-1500. The Company is a wholly-owned subsidiary of Sinclair. The following table lists the names of all directors and executive officers of the Company and Sinclair. The mailing address of each director and executive officer is: c/o Sinclair Broadcast Group, Inc., 10706 Beaver Dam Road, Hunt Valley, MD 21030, and each such person's telephone number is (410) 568-1500.
Name
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Position | |
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Directors | ||
David D. Smith | President and Chairman of the Board of Directors | |
Frederick G. Smith | Director | |
J. Duncan Smith | Director | |
Robert E. Smith | Director | |
Daniel C. Keith | Director | |
Martin R. Leader | Director | |
Lawrence E. McCanna | Director | |
Basil A. Thomas | Director | |
Executive Officers |
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David B. Amy | Secretary | |
Lucy A. Rutishauser | Treasurer | |
Steven M. Marks | Vice President / Chief Operating Officer | |
M. William Butler | Vice President / Programming and Promotion | |
Delbert R. Parks III | Vice President / Engineering and Operations | |
Robert F. Malandra | Vice President / Finance Television |
Name
|
Position | |
---|---|---|
Directors | ||
David D. Smith | President, Chief Executive Officer and Chairman of the Board of Directors | |
Frederick G. Smith | Vice President and Director | |
J. Duncan Smith | Vice President, Secretary and Director | |
Robert E. Smith | Director | |
Daniel C. Keith | Director | |
Martin R. Leader | Director | |
Lawrence E. McCanna | Director | |
Basil A. Thomas | Director | |
Executive Officers |
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David B. Amy | Executive Vice President / Chief Financial Officer | |
Barry M. Faber | Executive Vice President / General Counsel | |
Lucy A. Rutishauser | Vice President / Corporate Finance / Treasurer | |
David R. Bochenek | Vice President / Chief Accounting Officer | |
Steven M. Marks | Vice President / Chief Operating Officer |
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ITEM 4. TERMS OF THE TRANSACTION.
(a) Material Terms. The information set forth under the captions entitled "Summary," "The Offers" and "Certain U.S. Federal Income Tax Considerations" in the Offer to Purchase is incorporated herein by reference.
(b) Purchases. The information set forth under the caption "Interests of Directors and Executive Officers" in the Offer to Purchase is incorporated herein by reference.
ITEM 5. PAST CONTRACTS, TRANSACTIONS, NEGOTIATIONS AND AGREEMENTS.
(e) Agreements Involving the Issuer's Securities. The information set forth under the captions "The OffersDescription of the Securities" and "Interests of Directors and Executive Officers" and the documents referred to and information set forth under the caption "Incorporation of Certain Documents by Reference" in the Offer to Purchase are incorporated herein by reference.
Sinclair is a party to the following agreements in connection with the Securities:
Sinclair is a party to the following agreements in connection with certain series of securities:
A description of these series of securities is set forth under caption "Note 6. Notes Payable and Commercial Bank Financing" in Sinclair's Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the "Commission") on March 4, 2009 (File No. 000-26076) (the "2008 10-K"), and is incorporated herein by reference.
Sinclair is a party to the following equity compensation plan:
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A description of this plan and these agreements relating to the plan is set forth under the caption "Note 2: Stock-Based Compensation Plans" in the 2008 10-K and is incorporated herein by reference.
Certain directors and controlling stockholders are a party to the following stockholders' agreement:
ITEM 6. PURPOSES OF THE TRANSACTION AND PLANS OR PROPOSALS.
(a) Purposes. The information set forth under the caption "The OffersPurpose of the Offers" in the Offer to Purchase is incorporated herein by reference.
(b) Use of Securities Acquired. Any Securities accepted for purchase by the Company pursuant to the Offers will be retired and cancelled and will no longer be outstanding.
(c) Plans. The information set forth under the caption "The OffersSource of Funds" in the Offer to Purchase is incorporated herein by reference.
ITEM 7. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
(a) Source of Funds. The information set forth under the caption "The OffersSource of Funds" in the Offer to Purchase is incorporated herein by reference. Assuming that we purchase $294.3 million in aggregate principal amount of outstanding 3.0% Notes pursuant to the Offer at the offer price of $980 per $1,000 in principal amount, and $143.5 million in aggregate principal amount of outstanding 4.875% Notes pursuant to the Offer at the offer price of $980 per $1,000 in principal amount, we will require approximately $429.0 million to consummate the Offers.
(b) Conditions. The information set forth under the caption "The OffersConditions of the Offers; Extension; Amendment; Termination" in the Offer to Purchase is incorporated herein by reference. We have no alternative financing arrangements or alternative financing plans.
(d) Borrowed Funds. The information set forth under the caption "The OffersSource of Funds" in the Offer to Purchase is incorporated herein by reference.
ITEM 8. INTEREST IN SECURITIES OF THE ISSUER.
(a) Securities Ownership. The information set forth under the caption "Interests of Directors and Executive Officers" in the Offer to Purchase is incorporated herein by reference.
(b) Securities Transactions. The information set forth under the caption "Interests of Directors and Executive OfficersRecent Transactions Involving the Securities" in the Offer to Purchase is incorporated herein by reference.
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ITEM 9. PERSONS/ASSETS RETAINED, EMPLOYED, COMPENSATED OR USED.
(a) Solicitations or Recommendations. The information set forth under the captions "Summary" and "Dealer Manager, Depositary and Information Agent" in the Offer to Purchase is incorporated herein by reference.
ITEM 10. FINANCIAL STATEMENTS.
(a) Financial Information. The information set forth in our Annual Report on Form 10-K for the year ended December 31, 2008, in our Quarterly Reports on Form 10-Q for the quarterly periods ended March 31, 2009 and June 30, 2009, and the financial information set forth under the captions "The OffersSource of Funds," "Certain Significant ConsiderationsMarket and Trading Information for the Securities" and "Ratio of Earnings to Fixed Charges of Sinclair" in the Offer to Purchase is incorporated herein by reference.
(b) Pro Forma Information. Not applicable.
ITEM 11. ADDITIONAL INFORMATION.
(a) Agreements, Regulatory Requirements and Legal Proceedings. The documents referred to under the caption "Incorporation of Certain Documents by Reference" and the information set forth under the caption "The OffersCertain Legal Matters; Regulatory Approvals" in the Offer to Purchase are incorporated herein by reference.
(b) Other Material Information. Not applicable.
The Index to Exhibits appearing after the signature page is incorporated herein by reference.
ITEM 13. INFORMATION REQUIRED BY SCHEDULE 13E-3.
Not applicable.
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After due inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.
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SINCLAIR TELEVISION GROUP, INC. | |||||
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By: |
/s/ DAVID B. AMY |
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Name: | David B. Amy | ||||
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Title: | Secretary | ||||
Date: October 8, 2009 |
Exhibit Number | Description | |
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(a)(1)(i) | Offer to Purchase, dated October 8, 2009. | |
(a)(1)(ii) |
Letter of Transmittal (including Substitute Form W-9 and Guidelines for Certification of Taxpayer Identification Number on Substitute Form W-9). |
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(a)(5)(i) |
Press Release, dated August 20, 2009 (incorporated herein by reference from the Schedule TO-C filed on August 21, 2009). |
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(a)(5)(ii) |
Press Release, dated October 8, 2009. |
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(b)(1) |
Form of Indenture related to the Second Lien Notes (as defined in the Offer to Purchase).* |
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(b)(2) |
Third Amended and Restated Credit Agreement, dated as of December 21, 2006, between Sinclair Television Group, Inc. and JP Morgan Chase Bank N.A., as Administrative Agent (incorporated herein by reference from Sinclair's Annual Report on Form 10-K for the year ended December 31, 2006). |
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(b)(3) |
Form of Amendment to Third Amended and Restated Credit Agreement.* |
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(d)(1) |
Senior Indenture, dated as of May 10, 2007 between Sinclair Broadcast Group, Inc. and U.S. Bank National Association, as trustee (incorporated herein by reference from Sinclair's Current Report on Form 8-K, filed on May 11, 2007). |
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(d)(2) |
First Supplemental Indenture, dated as of May 10, 2007 between Sinclair Broadcast Group, Inc. and U.S. Bank National Association, as trustee (incorporated herein by reference from Sinclair's Current Report on Form 8-K, filed on May 11, 2007). |
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(d)(3) |
Indenture, dated as of May 20, 2003 between Sinclair Broadcast Group, Inc. and U.S. Bank National Association (as successor to Wachovia Bank, National Association), as trustee (incorporated herein by reference from Sinclair's Registration Statement on Form S-4 No. 333-107522). |
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(d)(4) |
Indenture, dated as of March 14, 2002, between Sinclair Broadcast Group, Inc. and U.S. Bank National Association (as successor to Wachovia Bank, National Association, formerly First Union National Bank), as Trustee (incorporated herein by reference from Sinclair's Annual Report on Form 10-K for the year ended December 31, 2001). |
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(d)(5) |
Form of Subordinated Indenture between Sinclair Broadcast Group, Inc. and U.S. Bank National Association (as successor to Wachovia Bank, National Association, formerly First Union National Bank), as Trustee (incorporated herein by reference from Sinclair's Current Report on Form 8-K, filed on December 16, 1997). |
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(d)(6) |
Ninth Supplemental Indenture, dated as of May 13, 2005, between Sinclair Broadcast Group, Inc. and U.S. Bank National Association (as successor to Wachovia Bank, National Association, formerly First Union National Bank), as Trustee (incorporated herein by reference from Sinclair's Current Report on Form 8-K, filed on June 21, 2005). |
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(d)(7) |
Common Non-Voting Capital Stock Option between Sinclair Broadcast Group, Inc. and William Richard Schmidt, as trustee (incorporated herein by reference from Sinclair's Registration Statement on Form S-1 No. 33-90682). |
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(d)(8) |
Common Non-Voting Capital Stock Option between Sinclair Broadcast Group, Inc. and C. Victoria Woodward, as trustee (incorporated herein by reference from Sinclair's Registration Statement on Form S-1 No. 33-90682). |
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(d)(9) |
Common Non-Voting Capital Stock Option between Sinclair Broadcast Group, Inc. and Dyson Ehrhardt, as trustee (incorporated herein by reference from Sinclair's Registration Statement on Form S-1 No. 33-90682). |
Exhibit Number | Description | |
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(d)(10) | Common Non-Voting Capital Stock Option between Sinclair Broadcast Group, Inc. and Mark Knobloch, as trustee (incorporated herein by reference from Sinclair's Registration Statement on Form S-1 No. 33-90682). | |
(d)(11) |
1996 Long-Term Incentive Plan for Sinclair Broadcast Group, Inc. (incorporated herein by reference from Sinclair's Annual Report on Form 10-K/A for the year ended December 31, 1996). |
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(d)(12) |
First Amendment to 1996 Long-Term Incentive Plan for Sinclair Broadcast Group, Inc. (incorporated herein by reference from Sinclair's Proxy Statement on Schedule 14A for the year ended December 31, 1998). |
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(d)(13) |
Form of Restricted Stock Award Agreement (incorporated herein by reference from Sinclair's Quarterly Report on Form 10-Q for the quarter ended June 30, 2006). |
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(d)(14) |
Stock Appreciation Right Agreement between Sinclair Broadcast Group, Inc. and David D. Smith dated April 2, 2007 (incorporated herein by reference from Sinclair's Quarterly Report on Form 10-Q for the quarter ended March 31, 2007). |
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(d)(15) |
Stock Appreciation Right Agreement between Sinclair Broadcast Group, Inc., and David D. Smith dated April 1, 2008 (incorporated by reference from Sinclair's Report on Form 10-Q filed on May 9, 2008). |
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(d)(16) |
Director Compensation (incorporated herein by reference from Sinclair's Annual Report on Form 10-K for the year ended December 31, 2005). |
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(d)(17) |
Stockholders' Agreement, dated April 19, 2005, by and among the Smith brothers (incorporated herein by reference from Sinclair's Current Report on Form 8-K, filed on April 26, 2005). |