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Tribune Announces the Pricing
for the Redemption of its $400 Million Notes
Prices the Redemption
of $400 million of 7.45% Notes Due 2009
Announces Results of Overall Debt Retirement Including
Recent Debt Tenders
CHICAGO, April
13, 2004 -- Tribune Company today set
the pricing for the previously announced redemption of
all of its $400 million outstanding 7.45% Notes due 2009. The redemption price was determined today to be $1,190.36
per $1,000 of principal amount, excluding accrued interest.
The price was calculated in accordance with the terms of
the Notes, based on a 3.452% yield to maturity of the U.S.
Treasury securities with a coupon of 6% due August 15, 2009,
plus a fixed spread of 15 basis points. Settlement will occur
on April 16, 2004, for a total of $1,190.57 per $1,000 of
principal amount, including one day of accrued interest.
The normal semi-annual interest coupon for these Notes will
be paid separately on April 15, 2004.
The following table summarizes the results
of Tribune’s
overall debt retirement, including the recently completed
cash tender offers for $148 million of 7.25% Debentures due
2013 and $250 million of 6.61% Debentures due 2027.
CUSIP No. |
Original
Principal Amount |
Principal
Amount
Retired |
Remaining Principal Amount |
Maturity Date |
887364AH0 |
$400,000,000 |
$400,000,000 |
- |
October 2009 |
887364AA5 |
148,215,000 |
66,132,000 |
$82,083,000 |
March 2013 |
887364AF4 |
250,000,000 |
165,040,000 |
84,960,000 |
September 2027 |
TOTAL |
$798,215,000 |
$631,172,000 |
$167,043,000 |
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Overall, Tribune will pay approximately $760 million to
retire $631 million of long-term debt. As a result, Tribune
will incur a one-time, non-operating, after-tax charge of
approximately $85 million, or $0.26 per fully diluted share,
in the second quarter of 2004. Tribune will fund these transactions
with cash from operations and relatively low interest rate
commercial paper.
Additional details regarding the debt retirement will be
discussed during Tribune Company's previously scheduled conference
call to announce first quarter earnings on Thursday, April
15, at 8 a.m. CT (9 a.m. ET, 6 a.m. PT).
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TRIBUNE (NYSE:
TRB) is one of the country’s premier media companies,
operating businesses in broadcasting and publishing. It
reaches more than 80 percent of U.S. households and is
the only media organization with television stations, newspapers
and websites in the nation’s top three markets. In
publishing, Tribune operates 14 leading daily newspapers
including the Los Angeles Times, Chicago Tribune, Newsday
and Spanish-language Hoy, plus a wide range of targeted
publications. The company’s broadcasting group operates
26 television stations; Superstation WGN on national cable;
WGN-AM in Chicago; and the Chicago Cubs baseball team.
Popular news and information websites complement Tribune’s
print and broadcast properties and extend the company’s
nationwide audience. |
