No Immediate Impact on Sinclair Broadcast Group's (SBGI) Ratings Following Media General (MEG) Deal - Moody's

Moody's says Sinclair Broadcast Group (Nasdaq: SBGI) announced its agreement to purchase the broadcast assets of one television station in Providence, RI owned by Media General, Inc. (NYSE: MEG), two television stations in Green Bay, WI owned by LIN Media, LLC ("LIN") and one television station in Savannah, GA owned by WTGS Television, LLC and operated by LIN through a shared service arrangement. Sinclair also agreed to sell Media General the broadcast assets of two stations in Colorado Springs, CO and one station in Tampa, FL upon completion of the LIN/Media General merger. The company's previously announced sale of WHTM in Harrisburg to Media General is expected to close in September 2014. Sinclair will pay a net cash price of $31 million for an additional $3.4 million of broadcast cash flow being swapped, and the company expects to generate an additional $2.0 million of synergies.

There is no immediate impact to Sinclair's credit ratings or stable outlook as Moody's expects the overall operating performance and financial credit metrics will remain within the Ba3 Corporate Family Rating. Although the company expects to fund the purchase price at closing using balance sheet cash or a draw under the existing bank credit facilities, the station swaps will not meaningfully increase the 2-year average debt-to-EBITDA ratio above the 5.2x pre-transaction level (including Moody's standard adjustments) estimated for June 30, 2014. Completion of each of the transactions is subject to regulatory approvals and other customary conditions as well as the closing of the LIN/Media General merger. Sinclair anticipates the transactions to close in the beginning of 2015, concurrent with the closing of the LIN/Media General merger.

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