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Tribune Accounts Receivable DIP Set To Wrap

08 Apr 2009

The refinancing of the accounts receivable securitization debtor-in-possession loan for Tribune Co. was oversubscribed last week and is set to close on Friday.

The refinancing of the accounts receivable securitization debtor-in-possession loan for Tribune Co. was oversubscribed last week and is set to close on Friday. The $225 million securitization facility, led by Barclays Capital, comprises a $75 million revolver and a $150 million term loan. Pricing is LIBOR plus 6% with a 3% LIBOR floor. The deal refinances a $300 million term loan that Barclays provided the company upon its abrupt bankruptcy filing in December (CIN, 2/14).

"We didn't sell the first loan because it was basically a bridge. It was downsized because the company didn't need as much as we put in place," said one banker. The new loan has a one-year maturity.

08 Apr 2009