Freedom Communications to launch approximately $1 billion credit facility by month end

By Sara Rosenberg

New York, Jan. 20 - Freedom Communications Inc. is expected to hold a bank meeting by the end of the month for a new senior credit facility sized at around $1 billion, according to a source close to the deal. JPMorgan and Morgan Stanley are the lead banks on the facility.

Originally the bank meeting was expected to take place some time this week but it was delayed "about a week or two for timing reasons", the source said.

The facility consists of $1 billion in term loans - divided into tranche A and B pieces - and a small revolver, according to the source.

No price talk has been revealed as of yet.

Proceeds will be used to help support the company's previously announced recapitalization. In October, the company announced that it signed a definitive agreement with Blackstone Communications Partners and Providence Equity Partners to form a new partnership. Under the terms of the agreement, Blackstone and Providence will make a significant investment in the firm and enable continued control by descendents of founder R. C. Hoiles.

Freedom Communications is an Irvine, Calif., diversified media company.

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