L A Times parent draws $250-million credit amidst financial crisis; ends AP feed deal

Samuel Zell, Chairman, President and CEO, Tribune CompanyTribune Co, the US newspaper publisher and broadcaster, struggling under a $13-billion debt load, plans to borrow $250 million from an existing $750 million secured revolving credit facility.

It has also given a notice to terminates its contract with the Associated Press as the newspaper tries to cut costs amidst the ongoing global financial crisis.

In a filing with the US securities regulators on Friday, the newspaper said, "Tribune is borrowing under the revolving credit facility to increase its cash position to preserve its financial flexibility in light of the current uncertainty in the credit markets."

Tribune spokesman, Gary Weitman said in a statement "Like many businesses, we are strengthening our liquidity position in today's uncertain credit market, this draw represents only a portion of our revolver; we have access to a remaining $ 400 million."

With the $250 million it plans to withdraw now and approx $98 million in outstanding letters of credit, Tribune still has about $402 million left from the $750 million secured revolving credit facility.

The Chicago, Illinois-based company is the second largest newspaper publisher in the US with leading daily newspapers including the Los Angeles Times, Chicago Tribune, Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, Morning Call and Daily Press. The company's broadcasting group operates 23 television stations, WGN America on national cable, Chicago's WGN-AM and the Chicago Cubs baseball team.