Tribune launches $225 million credit facility at Libor plus 600 bps

By Sara Rosenberg

New York, March 12 - Tribune Co. launched its $225 million one-year accounts receivable securitization facility on Thursday with price talk of Libor plus 600 basis points with a 3% Libor floor, according to a market source.

Tranching on the facility is comprised of a $75 million revolver and a $150 million term loan.

Both tranches are expected to be sold at an original issue discount; however, the issue price is still to be determined, the source remarked.

Barclays is the lead bank on the deal.

Proceeds will be used to refinance an interim $300 million accounts receivable securitization debtor-in-possession financing facility that was provided by Barclays back in July 2008 and expires on April 10.

The actual borrower under the proposed deal is a bankruptcy remote special purpose entity.

Tribune is a Chicago-based media company.

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