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Tribune $3.8B leveraged loan backing Local TV buy enters trading above OID

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Tribune $3.8B leveraged loan backing Local TV buy enters trading above OID

tribune-company_200x200

The $3.8 billion TLB for Tribune Co. broke for trading late this afternoon at 100/100.25, from issuance at 99.75, according to sources. The seven-year loan is priced at L+300, with a 1% LIBOR floor, and includes six months of 101 soft call protection. J.P. Morgan, Bank of America Merrill Lynch, Citigroup, Deutsche Bank, and Credit Suisse arranged the loan, which backs Tribune Co.’s planned acquisition of Local TV from Oak Hill Capital Partners. The issuer is also putting in place a $300 million, five-year revolver. As reported, the leads trimmed pricing on the covenant-lite loan from original talk of L+350, with a 1% floor and a 99 offer price. Tribune in July agreed to purchase Local TV’s 19 television stations for $2.725 billion in cash. The company will also refinance its existing debt alongside the purchase and is spinning off its publishing assets into an independent company, ultimately leaving a pure-play broadcaster.

Terms:

Borrower Tribune Co.
Issue $3.8 billion TLB
UoP Finance Local TV purchase, refinance debt
Spread L+300
LIBOR floor 1.00%
Price 99.75
Tenor seven years
Call protection six months of 101 soft call
YTM 4.11%
Corporate ratings BB-/Ba3
Facility ratings BB+/Ba3
S&P recovery rating 1
Financial covenants none
Bookrunners JPM, BAML, Citi, DB, CS
Admin agent JPM
Px talk L+350/1%/99