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.
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).