Lenders Reject Sinclair Libor Loan Amendment With 10bps CSA

Sinclair Television Group Inc. saw lenders reject an amendment to transition a first-lien leveraged loan from Libor to SOFR because the borrower didn’t offer a high enough credit-spread adjustment to compensate for the difference between the two benchmark rates, according to people with knowledge of the matter who asked not to be named discussing a private transaction.

• The amendment, which included a 10bps credit spread adjustment, would have transitioned the $1.3b 1L loan due 2026
• The loan used a negative consent process, meaning more than half of the lenders had to actively reject the amendment to block it
• JPMorgan Chase ...