Tribune restructures $1 billion notes offering; talk at 5¾%-6% yield; pricing Thursday

By Paul Deckelman

New York, June 17 – Tribune Media Co. restructured its planned $1 billion offering of senior notes (B2), high-yield syndicate sources said Wednesday.

Originally planned as a two-part offering of seven-year notes with three years of call protection and 10-year notes with five years of call protection, the 10-year piece of paper was dropped, leaving just the seven-year tranche.

The overall size of the financing was not changed.

Price talk was heard envisioning a yield of between 5¾% and 6% on the issue.

The notes are being marketed to potential investors via a roadshow that began on Friday and which is scheduled to run through Thursday, with pricing expected later on Thursday.

The Rule 144A and Regulation S with registration rights deal will be brought to market via joint bookrunning managers Deutsche Bank Securities Inc., Citigroup Global Markets Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs & Co. and Morgan Stanley & Co. LLC.

Barclays, Credit Suisse Securities (USA) LLC, SunTrust Robinson Humphrey Inc., UBS Securities LLC and Wells Fargo Securities LLC are the co-managers.

Tribune, a Chicago-based broadcasting and digital media company, plans to use the proceeds to repay a portion of its term loan.

The company said that it expects to enter into an amendment to its existing term loan facility to, among other things, reduce the pricing of the loans made under such term loan facility and to amend covenants to be consistent with the terms of the notes.

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