Tribune obtains final approval of $50 million letter of credit, securitization facility

By Jennifer Lanning Drey

Portland, Ore., Jan. 15 - Tribune Co. was granted final court approval of a $50 million letter of credit and an amended securitization facility, both from Barclays Bank plc, Thursday from the U.S. Bankruptcy Court for the District of Delaware, according to a source familiar with the case.

As previously reported, the trade receivables securitization loan was originally provided by Barclays in July, and the loan has been reduced to $225 million from $300 million in connection with Tribune's bankruptcy filing.

The receivables loan will mature on April 10, 2009.

Interest on the letter of credit will be Barclays' Base rate plus 500 basis points.

Tribune will pay letter-of-credit commissions of 3% of the daily average undrawn face amount of the letter of credit as well as a $10,000-per-month administration fee, a 0.125% fronting fee and a commitment fee of 0.5% of the daily unused amount of the lender's commitment.

The letter-of-credit agreement will terminate on the earliest of 120 days from the company's bankruptcy filing date and the effective date of Tribune's plan of reorganization.

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

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