Tribune Co. is seeking $4.1 billion of loans to finance its acquisition of television stations and to refinance debt, according to a person with knowledge of the transaction.
JPMorgan Chase & Co. is arranging a $3.8 billion seven-year term loan and a $300 million five-year revolving credit line for the Chicago-based company, said the person, who asked not to be identified because terms aren’t set. The bank is hosting a meeting with lenders on Oct. 31.
Tribune announced in July that it was buying Local TV Holdings LLC’s 19 television stations in 16 markets for $2.73 billion in cash. The deal turns Tribune into the country’s largest commercial TV station owner, with a total of 42 from New York to Los Angeles and Miami to Seattle, the company said in a July 1 statement.
Tribune said later that month that it would separate its broadcasting and publishing businesses in two companies, spinning off its newspaper assets including the Los Angeles Times, Chicago Tribune, and The Baltimore Sun.
Under a revolver, money can be borrowed again once it’s repaid; in a term loan, it can’t.