Tribune seeks approval of $225,000 for exit financing fees, expenses

By Jim Witters

Wilmington, Del., July 27 - The Tribune Co. is seeking approval of an expense letter with Bank of America, NA and Merrill, Lynch, Pierce, Fenner & Smith Inc. in connection with the post-effective-date financing process in Tribune's reorganization, according to documents filed July 27 with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the court confirmed Tribune's fourth amended plan of reorganization on July 23. The plan provides for exit financing.

The ownership group that includes senior creditors Oaktree Capital Management, LP, Angelo Gordon & Co., LP and JPMorgan Chase Bank plans to obtain loans of $300 million and a $100 million letter of credit.

Bank of America "has indicated an interest in lending a substantial portion of the exit facility," and Merrill Lynch has proposed to act as lead arranger and book manager, according to court documents.

Tribune has agreed to reimburse Bank of America and Merrill Lynch a maximum of $225,000 for fees and expenses.

The debtors are not seeking approval of a commitment letter in connection with the exit facility at this time.

A hearing on the expense letter is scheduled for 10 a.m. ET on Aug. 7.

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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