Tribune Publishing obtains $278 million in first-, second-lien term loans

By Rebecca Melvin

Concord, N.H., May 25 – Tribune Publishing Co., Tribune Intermediate Holdco, LLC, and certain company subsidiaries, as guarantors, entered into first-lien and second-lien term loans for a total $278 million on Monday, according to an 8-K filing with the Securities and Exchange Commission.

The first lien term loan credit and guarantee agreement with Cerberus Business Finance Agency LLC as administrative agent provides for a $218 million term loan available to be used by the company and certain of its domestic subsidiaries to finance a planned merger, to refinance or extinguish certain existing debt, to pay transaction costs related to the merger, and for general corporate purposes.

Intermediate Holdco and substantially all of the company’s subsidiaries are guarantors of the first lien term loan, which matures on May 24, 2026.

Borrowings under the first lien term loan bear interest at a floating rate to be maintained based on maximum coverage and minimum fixed charge coverage ratios.

Events of default permit the lenders to accelerate the maturity of borrowings if not cured within applicable grace periods.

The company also entered into a second lien term loan credit and guarantee agreement with MNG Enterprises, Inc. as administrative agent. This facility provides $60 million of term loan credit available to be used by the company and certain of its domestic subsidiaries to finance its merger plan, to refinance or extinguish certain existing debt, to pay transaction costs related to the merger, and for general corporate purposes.

Intermediate Holdco and substantially all of the company’s subsidiaries are guarantors of all of the obligations under the second lien term loan credit agreement, which matures on May 24, 2027.

Obligations under this facility are secured on a second lien basis by substantially all the assets of Intermediate Holdco, the company and its subsidiaries. Borrowings bear interest at 13%, of which 6% is payable in cash and 7% is payable in kind.

The second lien term loan requires the company to comply with maximum leverage and minimum fixed charge coverage ratios.

Tribune Publishing is a Chicago-based newspaper publishing and local news and information gathering company.

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