Fitch affirms Tribune loans at BB

Fitch Ratings said it maintained a BB/RR2 rating on Tribune Co.'s revised senior secured credit facility, including the new tranche X facility.

Tribune's previously announced $7.015 billion first-step tranche B term loan facility was reallocated to include a $1.50 billion senior tranche X term loan facility due 2009 and a $5.515 billion senior tranche B term loan facility due 2014.

The agency noted that the terms of the tranche X facility include a $750 million mandatory amortization 18 months after the initial draw with the remaining principal becoming due in two years, resulting in heightened refinancing risk. However, given that all senior secured facilities are guaranteed by the company's material operating subsidiaries and secured by the capital stock of certain subsidiaries, Fitch rated the tranche X the same as the previously announced first-priority senior secured credit facility.

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