Item 1.01 Entry into a Material Definitive Agreement.
First Lien Term Loan Credit Agreement
On May 24, 2021, the Company, as borrower upon
and after the consummation of the Merger, Merger Sub, as borrower immediately prior to the consummation of the Merger, Tribune Intermediate
Holdco, LLC, a Delaware limited liability company (“Intermediate Holdco”), and certain of the Company’s subsidiaries,
as guarantors, entered into a First Lien Term Loan Credit and Guarantee Agreement (the “First Lien Term Loan Credit Agreement”)
with Cerberus Business Finance Agency, LLC, as Administrative Agent and Collateral Agent, and certain lenders party thereto. The First
Lien Term Loan Credit Agreement provides for a $218 million term loan credit facility available to be used by the Company and certain
of its domestic subsidiaries to finance the Merger, to refinance or extinguish certain existing indebtedness, to pay transaction costs
related to the Merger, and for general corporate purposes. Intermediate Holdco and substantially all of the Company’s subsidiaries
are guarantors of all of the obligations under the First Lien Term Loan Credit Agreement. The First Lien Term Loan Credit Agreement matures
on May 24, 2026.
Obligations under the First Lien Term Loan Credit
Agreement are secured by substantially all the assets of Intermediate Holdco, the Company and its subsidiaries.
Borrowings under the First Lien Term Loan Credit
Agreement bear interest at a floating rate and may be maintained as base rate loans (tied to the prime rate or the federal funds rate
plus 0.5%) or as Eurocurrency rate loans tied to LIBOR, plus a margin.
The First Lien Term Loan Credit Agreement requires
the Company to comply with maximum leverage and minimum fixed charge coverage ratios. In addition, the First Lien Term Loan Credit Agreement
contains other standard affirmative and negative covenants such as those which (subject to certain thresholds) limit the ability of the
Company and its subsidiaries to, among other things, incur debt, incur liens, engage in mergers, consolidations, liquidations or acquisitions,
enter into new lines of business not related to the Company’s current lines of business, make certain investments, make distributions
on or repurchase its equity securities, or engage in transactions with affiliates. Events of default under the First Lien Term Loan Credit
Agreement include, among other things, payment defaults, breaches of representations, warranties or covenants, defaults under material
indebtedness, certain events of bankruptcy or insolvency, judgment defaults, certain defaults or events relating to employee benefit plans
or a change in control of the Company. The events of default would permit the lenders to accelerate the maturity of borrowings under the
First Lien Term Loan Credit Agreement if not cured within applicable grace periods.
Second Lien Term Loan Credit Agreement
On May 24, 2021, the Company, as borrower upon
and after the consummation of the Merger, Merger Sub, as borrower immediately prior to the consummation of the Merger, Intermediate Holdco
and certain of the Company’s subsidiaries, as guarantors, entered into a Second Lien Term Loan Credit and Guarantee Agreement (the
“Second Lien Term Loan Credit Agreement”) with MNG Enterprises, Inc. (the “Second Lien Lender”),
as Administrative Agent and Collateral Agent, and the Second Lien Lender, as lender. The Second Lien Term Loan Credit Agreement provides
for a $60 million term loan credit facility available to be used by the Company and certain of its domestic subsidiaries to finance the
Merger, to refinance or extinguish certain existing indebtedness, to pay transaction costs related to the Merger, and for general corporate
purposes. Intermediate Holdco and substantially all of the Company’s subsidiaries are guarantors of all of the obligations under
the Second Lien Term Loan Credit Agreement. The Second Lien Term Loan Credit Agreement matures on May 24, 2027.
Obligations under the Second Lien Term Loan Credit
Agreement are secured on a second lien basis by substantially all the assets of Intermediate Holdco, the Company and its subsidiaries.
Borrowings under the Second Lien Term Loan Credit
Agreement bear interest at a rate of 13%, 6% of which is payable in cash and 7% of which is payable in kind.
The Second Lien Term Loan Credit Agreement requires
the Company to comply with maximum leverage and minimum fixed charge coverage ratios. In addition, the Second Lien Term Loan Credit Agreement
contains other standard affirmative and negative covenants such as those which (subject to certain thresholds) limit the ability of the
Company and its subsidiaries to, among other things, incur debt, incur liens, engage in mergers, consolidations, liquidations or acquisitions,
enter into new lines of business not related to the Company’s current lines of business, make certain investments, make distributions
on or repurchase its equity securities, or engage in transactions with affiliates. Events of default under the Second Lien Term Loan Credit
Agreement include, among other things, payment defaults, breaches of representations, warranties or covenants, defaults under material
indebtedness, certain events of bankruptcy or insolvency, judgment defaults, certain defaults or events relating to employee benefit plans
or a change in control of the Company. The events of default would permit the lenders to accelerate the maturity of borrowings under the
Second Lien Term Loan Credit Agreement if not cured within applicable grace periods.
Sale
of New York Daily News
The Company announced that Tribune Publishing
Company, LLC (“Tribune LLC”), a direct and wholly owned subsidiary of the Company, and Daily News Enterprises, LLC
(“Enterprises”), a privately held company, entered into a Membership Interest Purchase Agreement under which Enterprises
acquired 100% of Tribune LLC’s ownership interest in TRX Pubco, LLC and TRX Pubco GP, LLC, the parent companies to the New York
Daily News newspaper, effective May 23, 2021.