Diamond Sports Group Looks To Swap $3B Of Distressed Bonds

Sinclair Broadcast Group’s Diamond Sports Group is looking to swap some of its distressed bonds to take out new loans and help launch a sports streaming app.

Last month, the network secured $600 million in financing to support the app’s launch and renewed a broadcast deal with the NBA to stream games to the local territories of 16 teams on its new service.

The company, which operates Bally’s Sports Group, is looking to receive new second-lien secured senior notes by exchanging more than $3 billion of 5.375% notes that are due in 2026. Sinclair’s sports unit is looking for notes that hold the same coupon and maturity.

Sinclair purchased Diamond Sports Group in 2019 for a reported $9.6 billion. 

• In addition to a $635 million first-lien loan, Diamond Sports Group is asking holders to waive specific debt protections in order to add new debt.
• In exchange for existing debt, the company is also asking holders to take on a revolving credit line and a second-priority term loan.

The swap relies on approval from shareholders and the company receiving the new first-lien loan. The final exchange deadline is March 14.

Sinclair’s Sticky Situation

Last June, debt tied to Diamond Sports Group sold off after the firm failed to raise new capital and rework its balance sheet. Senior unsecured notes due in 2027 fell to less than half of their face value after holders were released from trade restrictions — they were among the worst performers in the market at the time, per Trace.