Tribune gets OK to enter commitments for $1.4 billion in exit loans

By Caroline Salls

Pittsburgh, Nov. 6 - Tribune Co. received court approval to enter into commitment letters for an up to $300 million five-year senior secured asset-based revolving credit exit facility and an up to $1.1 billion seven-year term loan facility, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The revolver will be used to fund the company's operations after its plan of reorganization takes effect, and the term loan will be used exclusively to fund cash plan distributions for some creditors.

The parties to the revolver commitment letter include Tribune and Bank of America Merrill Lynch, Bank of America, NA, J.P. Morgan Securities LLC, JPMorgan Chase Bank, NA, Citigroup Global Markets Inc., Credit Suisse AG, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Deutsche Bank Trust Co. Americas.

Bank of America will be the administrative agent for the revolver, and Merrill Lynch, JPMorgan Chase, Citigroup, Credit Suisse Securities and Deutsche Bank Securities will be joint lead arrangers and bookrunners.

The revolver commitment amount can be increased by a minimum of $25 million and in $5 million increments thereafter.

Interest on the revolving facility will be Libor plus 150 basis points for Libor loans.

Meanwhile, the parties to the term loan facility engagement letter are Tribune and J.P. Morgan, JPMorgan Chase, Citigroup, Deutsche Bank Securities, Credit Suisse Securities and Merrill Lynch.

JPMorgan, Citigroup, Credit Suisse Securities, Deutsche Bank Securities and Merrill Lynch will act as lead arrangers and bookrunners for the term loan facility. JPMorgan will be the administrative agent.

The interest rate on the term loan facility will be Libor plus a margin to be agreed upon.

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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