J.P. Morgan Chase is trying to win over lenders committed to an existing credit for Sinclair Broadcasting Group and gain approval for an amendment that takes the sting out of a recently pulled deal. Chase is looking to make the most of commitments that did come in on the new deal's $500 million "B" tranche. But the agent needs 51% of the existing bank group to approve the amendment tacking the "B" tranche onto the existing credit. "They'll get it done, but it won't be a slam dunk," said a banker on the syndicate. Efforts Chase is reportedly making include juicing up pricing on the deal's existing pro rata, paying out a generous amendment fee, and cutting back commitments by using the new "B" tranche to pay down some of the existing credit. Officials at Chase did not return calls. Robin Smith, v.p. finance, at Sinclair did not return calls by press time.
Bankers said roughly half of the members of Sinclair's current bank group were looking to exit the credit. Bank of America, Union Bank of California, BNP Paribas, and Société Générale are a few players market sources said were not planning on rolling over their positions on the company's credit as opposed to First Union and Bank of Nova Scotia who were planning to rollover for relationship purposes.