As reported in Shareholders Foundation today, a professional loss-prevention, settlement recovery, portfolio monitoring service, an investor has filed suit regarding the sale of Seattle based Fisher Broadcasting (KOMO Radio/TV,KVI,KPLZ) to Sinclair, claiming the offer is undervalued.
If you purchased shares of Fisher Communications, Inc. (NASDAQ:FSCI) prior to April 11, 2013, and currently hold any of those NASDAQ:FSCI shares, you have certain options and you should contact the Shareholders Foundation, Inc.
The plaintiff alleges that the defendants breached their fiduciary duties by agreeing to sell the company too cheaply via an unfair process to Sinclair Broadcast Group, Inc. On April 12, 2013, NASDAQ:FSCI shares traded as high as $41.20 per share.
Just days before the April 13th announcement of the acquisition, Sinclair Broadcast Group refinaced its credit loan terms. Sinclair raised $900.0 million of new term loans, which consisted of $500.0 million in new term A loans maturing April 2018 and priced at LIBOR plus 2.25% and $400.0 million in new term B loans maturing April 2020 and priced at LIBOR plus 2.25% with a LIBOR floor of 0.75%. In addition, Sinclair obtained a new $100.0 million revolving line of credit maturing April 2018 and priced at LIBOR plus 2.25%.