Debt tied to Sinclair Broadcast Group Inc.’s sports unit sold off after the company disclosed a failed attempt to raise new capital and rework its balance sheet with existing creditors, Bloomberg News reported. Bonds of its Diamond Sports Group unit due 2027 fell to less than half their face value on Tuesday as holders were released from restrictions limiting their ability to trade. The senior unsecured notes were among the worst performers in the U.S. high-yield market, according to Trace bond trading data. Sinclair proposed issuing $500 million of new Diamond Sports Group notes to existing bondholders, according to documents filed Monday. The plan, dated April 29, called for a roll-up of unsecured notes into first-lien bonds at prices between par and a 35% discount.
