Tribune to launch $1.4 billion exit credit facility on Wednesday

By Sara Rosenberg

New York, Nov. 26 - Tribune Co. will hold a bank meeting at 10:30 a.m. ET in New York on Wednesday to launch its $1.4 billion exit financing credit facility, according to a market source.

The facility consists of a $300 million five-year ABL revolver and a $1.1 billion seven-year term loan, the source said.

Based on court documents, revolver pricing is expected at Libor plus 150 basis points. Term loan pricing was not disclosed.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the lead banks on the deal, with JPMorgan the left lead on the term loan and Bank of America the left lead on the revolver.

Proceeds will be used to fund cash plan distributions for some creditors and operations after the company's plan of reorganization takes effect.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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