By: Media conglomerate Tribune Co. said Thursday it plans to use $500 million in available cash to reduce the amount it needs to borrow to close the $8.2 billion buyout of the company by year's end.
The latest evidence that the long-pending deal is about to close sent its stock up to a six-month high.
Tribune cleared the last apparent hurdle toward completing the transaction last week when the Federal Communications Commission gave its approval.
The company, which owns the Los Angeles Times, the Chicago Tribune and seven other daily newspapers along with 23 television stations and the Chicago Cubs, said its latest move will enable it to reduce borrowings under the original $2.1 billion bridge loan commitment on the deal to $1.6 billion.
Tribune is going private under a buyout being led by real estate magnate Sam Zell, who will become the company's chairman and have a leading stake. The company will be formally owned by an employee stock ownership plan.
Shares in Tribune jumped $2.41, or 8.1 percent, to $32.10 in morning trading Thursday.
Comments
No comments on this item Please log in to comment by clicking here