Tribune Company Announces Proposed Debt Offering by Tribune Publishing Company
CHICAGO, June 13, 2014 /PRNewswire/ -- Tribune Company (the "Company"; OTC: TRBAA) and Tribune Publishing Company ("Tribune Publishing") today announced that, in connection with the Company's previously announced intention to separate Tribune Publishing from the Company, Tribune Publishing plans to raise $350 million of debt by entering into a Senior Secured Term Loan facility. Tribune Publishing is also arranging a $140 million asset-based revolving credit facility. Tribune Company will not be a guarantor or otherwise provide credit support for the term loan facility or the revolving credit facility.
The Company anticipates the separation of Tribune Publishing to occur within the third quarter of 2014. Tribune Publishing will use a portion of the expected net proceeds from the term loan financing to pay a special cash dividend to Tribune Company, upon separation, of up to $275 million, which will be used to repay debt at Tribune Company.
TRIBUNE is one of the country's leading multimedia companies, operating businesses in broadcasting, publishing, and interactive. The company's broadcasting group owns or operates 42 television stations, WGN America on national cable, the national multicast networks Antenna TV and THIS TV, Tribune Studios and Chicago's WGN-AM. In publishing, Tribune's leading daily newspapers include the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press. Popular news and information websites complement Tribune's print and broadcast properties and extend the company's nationwide audience.
SOURCE Tribune Company