Tribune Reducing Loans In Advance Of Closing
December 6, 2007 at 8:43 AM (PT)
In a move seen as further evidence that the sale of the company to SAM ZELL is about to close, TRIBUNE CO. says it will use $500 million in available cash towards reducing the amount of debt it will take on in order to close the $8.2 billion deal. The funds will bring TRIBUNE's borrowings under its $2.1 billion bridge loan down to $1.6 billion.
In the deal, ZELL will be taking over the company in a buyout partnered with an employee stock ownership plan, with ZELL as Chairman. TRIBUNE owns one radio property, Talk WGN-A/CHICAGO, which will remain under the company's ownership thanks to a permanent waiver granted as part of the FCC's approval of the deal.