06-19-06 07:03 PM EST
By Jared A. Favole
Dow Jones Newswires;
WASHINGTON -(Dow Jones)- Tribune Co. (TRB) on Monday disclosed that it has entered into credit agreements to facilitate its previously announced tender offer for 75 million of its shares.
Tribune, a Chicago-based publishing and broadcasting company, entered into a $2.25 billion credit agreement and a $2.15 bridge credit agreement, according to a filing with the Securities and Exchange Commission.
Tribune said on May 30 that it plans to borrow as much as $2 billion to buy back 75 million shares using a Dutch-auction tender offer, under which stockholders can tender their shares at a price between $28 and $32.50.
The company said in Monday's filing that it plans to use the borrowings to finance the tender offer, refinance debt and to pay fees and expenses that arise from the tender offer.
The Chandler Trusts, the second-largest shareholders in the company, have opposed the tender offer and urged the company to explore other strategic alternatives, including breaking up its newspaper and television segments.
The trusts represent the family that used to own Times Mirror, which was acquired by Tribune. The trusts have said they don't intend to tender any shares.
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