Tribune sets Thursday launch for $4.1 billion credit facility

By Sara Rosenberg

New York, Oct. 28 - Tribune Co. scheduled a bank meeting for Thursday to launch its $4.1 billion senior secured credit facility, according to market sources.

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

The facility consists of a $300 million five-year revolver and a $3.8 billion seven-year term loan B, sources said.

Proceeds will be used to help fund the acquisition of Local TV Holdings LLC from Oak Hill Capital Partners for $2,725,000,000 and refinance existing debt.

Other funds for the transaction will come from cash on hand.

This past summer, when the acquisition was announced, the company said that leverage will be below 3 times net of cash on the balance sheet.

The combination is expected to generate more than $100 million in annual run-rate synergies within five years after closing.

Closing is expected to occur by the end of the year, subject to antitrust and Federal Communications Commission approvals and other customary conditions.

Tribune is a Chicago-based multimedia company. Local TV is a Newport, Ky.-based owner and operator of television stations.

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