Tribune cuts pricing on $1.1 billion term loan to Libor plus 300 bps

By Sara Rosenberg

New York, Dec. 13 - Tribune Co. reduced the spread on its $1.1 billion seven-year term loan (Ba3/BB+) to Libor plus 300 basis points from Libor plus 350 bps, according to a market source.

The loan still has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Recommitments were due at 5 p.m. ET on Thursday, the source said.

The company's $1.4 billion exit financing credit facility also includes a $300 million five-year ABL revolver.

Based on court documents, revolver pricing is expected at Libor plus 150 bps.

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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